Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2019 shares
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-09712
Entity Registrant Name	UNITED STATES CELLULAR CORPORATION
Entity Central Index Key	0000821130
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	62-1147325
Entity Address, Address Line One	8410 West Bryn Mawr
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60631
City Area Code	(773)
Local Phone Number	399-8900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Common Shares
Title of 12(b) Security	Common Shares, $1 par value
Trading Symbol	USM
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	53,722,200
6.95% Senior Notes
Title of 12(b) Security	6.95% Senior Notes due 2060
Trading Symbol	UZA
Security Exchange Name	NYSE
7.25% 2063 Senior Notes
Title of 12(b) Security	7.25% Senior Notes due 2063
Trading Symbol	UZB
Security Exchange Name	NYSE
7.25% 2064 Senior Notes
Title of 12(b) Security	7.25% Senior Notes due 2064
Trading Symbol	UZC
Security Exchange Name	NYSE
Series A Common Shares
Entity Common Stock, Shares Outstanding	33,005,900

Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating revenues
Total operating revenues	$ 973	$ 974	$ 1,939	$ 1,915
Operating expenses
Selling, general and administrative (including charges from affiliates of $20 million and $21 million, respectively, for the three months, and $39 million, and $40 million, respectively, for the six months)	344	342	669	668
Depreciation, amortization and accretion	177	159	345	317
(Gain) loss on asset disposals, net	5	1	7	2
(Gain) loss on sale of business and other exit costs, net	0	0	(2)	0
(Gain) loss on license sales and exchanges, net	0	(11)	(2)	(17)
Total operating expenses	943	918	1,844	1,794
Operating income	30	56	95	121
Investment and other income (expense)
Equity in earnings of unconsolidated entities	40	40	84	78
Interest and dividend income	5	3	11	7
Interest expense	(29)	(29)	(58)	(58)
Other, net	0	0	(1)	(1)
Total investment and other income	16	14	36	26
Income before income taxes	46	70	131	147
Income tax expense	14	18	41	40
Net income	32	52	90	107
Less: Net income attributable to noncontrolling interests, net of tax	1	3	4	14
Net income attributable to U.S. Cellular shareholders	$ 31	$ 49	$ 86	$ 93
Basic weighted average shares outstanding (in shares)	87	86	87	85
Basic earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.36	$ 0.57	$ 0.99	$ 1.09
Diluted weighted average shares outstanding (in shares)	88	86	88	86
Diluted earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.35	$ 0.56	$ 0.97	$ 1.08
Service
Operating revenues
Total operating revenues	$ 757	$ 741	$ 1,498	$ 1,465
Operating expenses
Cost of equipment sold	193	187	369	365
Equipment sales
Operating revenues
Total operating revenues	216	233	441	450
Operating expenses
Cost of equipment sold	$ 224	$ 240	$ 458	$ 459

Consolidated Statement of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating expenses
Selling, general and administrative, charges from affiliates	$ 20	$ 21	$ 39	$ 40

Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 90	$ 107
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	345	317
Bad debts expense	48	40
Stock-based compensation expense	25	17
Deferred income taxes, net	27	9
Equity in earnings of unconsolidated entities	(84)	(78)
Distributions from unconsolidated entities	76	70
(Gain) loss on asset disposals, net	7	2
(Gain) loss on sale of business and other exit costs, net	(2)	0
(Gain) loss on license sales and exchanges, net	(2)	(17)
Other operating activities	2	2
Changes in assets and liabilities from operations
Accounts receivable	3	43
Equipment installment plans receivable	(11)	(47)
Inventory	(4)	(3)
Accounts payable	(7)	(35)
Customer deposits and deferred revenues	8	(23)
Accrued taxes	3	6
Other assets and liabilities	(48)	(45)
Net cash provided by operating activities	476	365
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(282)	(173)
Cash paid for licenses	(255)	(2)
Cash received from investments	11	50
Cash paid for investments	(11)	0
Cash received from divestitures and exchanges	32	21
Other investing activities	(1)	3
Net cash used in investing activities	(506)	(101)
Cash flows from financing activities
Repayment of long-term debt	(10)	(10)
Common Shares reissued for benefit plans, net of tax payments	(8)
Common Shares reissued for benefit plans, net of tax payments		0
Distributions to noncontrolling interests	(2)	(4)
Other financing activities	(1)	(5)
Net cash used in financing activities	(21)	(19)
Net increase (decrease) in cash, cash equivalents and restricted cash	(51)	245
Cash, cash equivalents and restricted cash
Beginning of period	583	352
End of period	$ 532	$ 597

Consolidated Balance Sheet - USD ($)
$ in Millions

Jun. 30, 2019

Dec. 31, 2018

Current assets

Cash and cash equivalents

$ 528

$ 580

Short-term investments

18

17

Accounts receivable

Customers and agents, less allowances of $66 and $66, respectively

880

908

Roaming

29

20

Affiliated

3

2

Other, less allowances of $1 and $2, respectively

47

46

Inventory, net

146

142

Prepaid expenses

48

63

Other current assets

36

34

Total current assets

1,735

1,812

Assets held for sale

0

54

Licenses

2,469

2,186

Investments in unconsolidated entities

450

441

Property, plant and equipment

In service and under construction

7,980

7,778

Less: Accumulated depreciation and amortization

5,826

5,576

Property, plant and equipment, net

2,154

2,202

Operating lease right-of-use assets

888

0

Other assets and deferred charges

527

579

Total assets

^[1]

8,223

7,274

Current liabilities

Current portion of long-term debt

19

Accounts payable

Affiliated

8

9

Trade

313

304

Customer deposits and deferred revenues

164

157

Accrued taxes

32

30

Accrued compensation

45

78

Short-term operating lease liabilities

101

0

Other current liabilities

65

94

Total current liabilities

747

691

Liabilities held for sale

0

1

Deferred liabilities and credits

Deferred income tax liability, net

538

510

Long-term operating lease liabilities

858

0

Other deferred liabilities and credits

299

389

Long-term debt, net

1,596

1,605

Commitments and contingencies

Noncontrolling interests with redemption features

10

11

U.S. Cellular shareholders’ equity

Series A Common and Common Shares Authorized 190 shares (50 Series A Common and 140 Common Shares) Issued 88 shares (33 Series A Common and 55 Common Shares) Outstanding 86 shares (33 Series A Common and 53 Common Shares) Par Value ($1.00 per share) ($33 Series A Common and $55 Common Shares)

88

Additional paid-in capital

1,615

1,590

Treasury shares, at cost, 1 and 2 Common Shares, respectively

(50)

(65)

Retained earnings

2,509

2,444

Total U.S. Cellular shareholders' equity

4,162

4,057

Noncontrolling interests

13

10

Total equity

4,175

4,067

Total liabilities and equity

^[1]

$ 8,223

$ 7,274

[1]

The consolidated total assets as of June 30, 2019 and December 31, 2018, include assets held by consolidated variable interest entities (VIEs) of $916 million and $868 million, respectively, which are not available to be used to settle the obligations of U.S. Cellular. The consolidated total liabilities as of June 30, 2019 and December 31, 2018, include certain liabilities of consolidated VIEs of $19 million and $23 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of U.S. Cellular. See Note 9 — Variable Interest Entities for additional information.

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts receivable
Customer and agent allowances	$ 66	$ 66
Other allowances	$ 1	$ 2
U.S. Cellular shareholders’ equity
Authorized shares (in shares)	190,000,000	190,000,000
Issued shares (in shares)	88,000,000	88,000,000
Outstanding shares (in shares)	87,000,000	86,000,000
Par value	$ 88	$ 88
Variable Interest Entities VIEs
Total VIE assets that can be used to settle only the VIEs' obligations	916	868
Total VIE liabilities for which creditors have no recourse	$ 19	$ 23
Series A Common Shares
U.S. Cellular shareholders’ equity
Authorized shares (in shares)	50,000,000	50,000,000
Issued shares (in shares)	33,000,000	33,000,000
Outstanding shares (in shares)	33,000,000	33,000,000
Par value per share (USD per share)	$ 1	$ 1
Par value	$ 33	$ 33
Common Shares
U.S. Cellular shareholders’ equity
Authorized shares (in shares)	140,000,000	140,000,000
Issued shares (in shares)	55,000,000	55,000,000
Outstanding shares (in shares)	54,000,000	53,000,000
Par value per share (USD per share)	$ 1	$ 1
Par value	$ 55	$ 55
Treasury shares (in shares)	1,000,000	2,000,000

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Series A Common and Common shares	Additional paid-in capital	Treasury shares	Retained earnings	Total U.S. Cellular shareholders' equity	Noncontrolling interests
Cumulative effect of accounting change	$ 174				$ 173	$ 173	$ 1
Beginning balance at Dec. 31, 2017	3,687	$ 88	$ 1,552	$ (120)	2,157	3,677	10
Net income attributable to U.S. Cellular shareholders	93				93	93
Net income attributable to noncontrolling interests classified as equity	1					0	1
Incentive and compensation plans	0			21	(21)	0
Stock-based compensation awards	17		17			17
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Jun. 30, 2018	3,971	88	1,569	(99)	2,402	3,960	11
Cumulative effect of accounting change	(2)				(2)	(2)
Beginning balance at Mar. 31, 2018	3,918	88	1,560	(116)	2,375	3,907	11
Net income attributable to U.S. Cellular shareholders	49				49	49
Net income attributable to noncontrolling interests classified as equity	1					0	1
Incentive and compensation plans	(3)			17	(20)	(3)
Stock-based compensation awards	9		9			9
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Jun. 30, 2018	3,971	88	1,569	(99)	2,402	3,960	11
Beginning balance at Dec. 31, 2018	4,067	88	1,590	(65)	2,444	4,057	10
Net income attributable to U.S. Cellular shareholders	86				86	86
Net income attributable to noncontrolling interests classified as equity	5					0	5
Incentive and compensation plans	(8)			15	(23)	(8)
Stock-based compensation awards	25		25			25
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Jun. 30, 2019	4,175	88	1,615	(50)	2,509	4,162	13
Cumulative effect of accounting change	2				2	2
Beginning balance at Mar. 31, 2019	4,134	88	1,599	(63)	2,497	4,121	13
Net income attributable to U.S. Cellular shareholders	31				31	31
Net income attributable to noncontrolling interests classified as equity	1					0	1
Incentive and compensation plans	(8)			13	(21)	(8)
Stock-based compensation awards	16		16			16
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Jun. 30, 2019	$ 4,175	$ 88	$ 1,615	$ (50)	$ 2,509	$ 4,162	$ 13

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Basis of Presentation

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1 Basis of Presentation

United States Cellular Corporation (U.S. Cellular), a Delaware Corporation, is an 82%-owned subsidiary of Telephone and Data Systems, Inc. (TDS).

The accounting policies of U.S. Cellular conform to accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). Unless otherwise specified, references to accounting provisions and GAAP in these notes refer to the requirements of the FASB ASC. The consolidated financial statements include the accounts of U.S. Cellular, subsidiaries in which it has a controlling financial interest, general partnerships in which U.S. Cellular has a majority partnership interest and certain entities in which U.S. Cellular has a variable interest that require consolidation under GAAP. All material intercompany accounts and transactions have been eliminated.

The unaudited consolidated financial statements included herein have been prepared by U.S. Cellular pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, U.S. Cellular believes that the disclosures included herein are adequate to make the information presented not misleading. Certain numbers included herein are rounded to millions for ease of presentation; however, certain calculated amounts and percentages are determined using the unrounded numbers. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in U.S. Cellular’s Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2018.

The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of U.S. Cellular’s financial position as of June 30, 2019 and December 31, 2018, its results of operations and changes in equity for the three and six months ended June 30, 2019 and 2018, and its cash flows for the six months ended June 30, 2019 and 2018. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and six months ended June 30, 2019 and 2018, equaled net income. These results are not necessarily indicative of the results to be expected for the full year. U.S. Cellular has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2018, except as disclosed in Note 8 — Leases.

Restricted Cash

U.S. Cellular presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows as of June 30, 2019 and December 31, 2018.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Cash and cash equivalents	$	528	$	580
Restricted cash included in Other current assets	4		3
Cash, cash equivalents and restricted cash in the statement of cash flows	$	532	$	583

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. U.S. Cellular is required to adopt ASU 2016-13 on January 1, 2020, using the modified retrospective approach. Early adoption is permitted; however, U.S. Cellular does not intend to adopt early. U.S. Cellular is evaluating the effects that adoption of ASU 2016-13 will have on its financial position, results of operations and disclosures.

Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 Revenue Recognition

Disaggregation of Revenue

In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
(Dollars in millions)
Revenues from contracts with customers:
Retail service	$	662	$	652	$	1,322	$	1,301
Inbound roaming	44		39		78		66
Other service	35		33		66		65
Service revenues from contracts with customers	741		724		1,466		1,432
Equipment sales	216		233		441		450
Total revenues from contracts with customers¹	$	957	$	957	$	1,907	$	1,882


¹	Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers.

Contract Balances

The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Accounts receivable
Customer and agents	$	880	$	908
Roaming	29		20
Other	43		32
Total¹	$	952	$	960


¹	Accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet as the amounts in this table only include receivables resulting from contracts with customers.

The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet.



	Contract Assets
(Dollars in millions)
Balance at December 31, 2018	$	9
Contract additions	6
Reclassified to receivables	(8		)
Balance at June 30, 2019	$	7

The following table provides a rollforward of 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.



	Contract Liabilities
(Dollars in millions)
Balance at December 31, 2018	$	163
Contract additions	81
Terminated contracts	(3		)
Revenue recognized	(73		)
Balance at June 30, 2019	$	168

Transaction price allocated to the remaining performance obligations

The following table includes estimated service revenue 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 revenue 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, 2019, and may vary from actual results due to future contract modifications. As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates.



	Service Revenue
(Dollars in millions)
Remainder of 2019	$	169
2020	104
Thereafter	229
Total	$	502

U.S. Cellular has certain contracts in which it bills an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., certain roaming agreements with other carriers). Because U.S. Cellular invoices for such items in an amount that corresponds directly with the value of the performance completed to date, U.S. Cellular may recognize revenue in that amount. As a practical expedient, these contracts are excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period.

Contract Cost Assets

U.S. Cellular expects that incremental commission fees paid as a result of obtaining contracts are recoverable and therefore U.S. Cellular capitalizes these costs. As a practical expedient, costs with an amortization period of one year or less are not capitalized. The contract cost asset balance related to commission fees was $131 million at June 30, 2019, and $139 million at December 31, 2018, and was recorded in Other assets and deferred charges in the Consolidated Balance Sheet. Capitalized commission fees are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term which ranges from fifteen months to thirty months. Amortization of contract cost assets was $27 million and $55 million for the three and six months ended June 30, 2019, respectively, and $26 million and $54 million for the three and six months ended June 30, 2018, respectively, and was included in Selling, general and administrative expense.

Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 3 Fair Value Measurements

As of June 30, 2019 and December 31, 2018, U.S. Cellular did not have any material financial or nonfinancial assets or liabilities that were required to be recorded at fair value in its Consolidated Balance Sheet in accordance with GAAP.

The provisions of GAAP establish a fair value hierarchy that contains three levels for inputs used in fair value measurements. Level 1 inputs include quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets and liabilities in inactive markets. Level 3 inputs are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 assets or Level 1 assets.

U.S. Cellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below.



		June 30, 2019				December 31, 2018
	Level within the Fair Value Hierarchy	Book Value		Fair Value		Book Value		Fair Value
(Dollars in millions)
Cash and cash equivalents	1	$	528	$	528	$	580	$	580
Short-term investments	1	18		18		17		17
Long-term debt
Retail	2	917		948		917		850
Institutional	2	534		578		534		531
Other	2	174		174		180		180

The fair values of Cash and cash equivalents and Short-term investments approximate their book values due to the short-term nature of these financial instruments. Long-term debt excludes lease obligations, other installment arrangements, the current portion of Long-term debt and debt financing costs. The fair value of “Retail” Long-term debt was estimated using market prices for the 7.25% 2063 Senior Notes, 7.25% 2064 Senior Notes and 6.95% Senior Notes. U.S. Cellular’s “Institutional” debt consists of the 6.7% Senior Notes which are traded over the counter. U.S. Cellular’s “Other” debt consists of a senior term loan credit agreement. U.S. Cellular estimated the fair value of its Institutional and Other debt through a discounted cash flow analysis using the interest rates or estimated yield to maturity for each borrowing, which ranged from 4.16% to 6.05% and 5.03% to 6.97% at June 30, 2019 and December 31, 2018, respectively.

Equipment Installment Plans

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Equipment Installment Plans

Note 4 Equipment Installment Plans

U.S. Cellular sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. U.S. Cellular values this trade-in right as a guarantee liability. The guarantee liability is initially measured at fair value and is determined based on assumptions including the probability and timing of the customer upgrading to a new device and the fair value of the device being traded-in at the time of trade-in. When a customer exercises the trade-in option, both the outstanding receivable and guarantee liability balances related to the respective device are reduced to zero, and the value of the used device that is received in the transaction is recognized as inventory. If the customer does not exercise the trade-in option at the time of eligibility, U.S. Cellular begins amortizing the liability and records this amortization as additional equipment revenue. As of June 30, 2019 and December 31, 2018, the guarantee liability related to these plans was $10 million and $11 million, respectively, and is reflected in Customer deposits and deferred revenues in the Consolidated Balance Sheet.

The following table summarizes equipment installment plan receivables as of June 30, 2019 and December 31, 2018.



	June 30, 2019			December 31, 2018
(Dollars in millions)
Equipment installment plan receivables, gross	$	961		$	974
Allowance for credit losses	(80		)	(77		)
Equipment installment plan receivables, net	$	881		$	897

Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)	$	568		$	560
Other assets and deferred charges (Non-current portion)	313			337
Equipment installment plan receivables, net	$	881		$	897

U.S. Cellular uses various inputs, including internal data, information from credit bureaus and other sources, to evaluate the credit profiles of its customers. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. Customers assigned to credit classes requiring no down payment represent a lower risk category, whereas those assigned to credit classes requiring a down payment represent a higher risk category. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows:



	June 30, 2019						December 31, 2018
	Lower Risk		Higher Risk		Total		Lower Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	888	$	9	$	897	$	904	$	17	$	921
Billed — current	43		1		44		35		1		36
Billed — past due	18		2		20		15		2		17
Equipment installment plan receivables, gross	$	949	$	12	$	961	$	954	$	20	$	974

Activity for the six months ended June 30, 2019 and 2018, in the allowance for credit losses for equipment installment plan receivables was as follows:



	June 30, 2019			June 30, 2018
(Dollars in millions)
Allowance for credit losses, beginning of period	$	77		$	65
Bad debts expense	38			30
Write-offs, net of recoveries	(35		)	(26		)
Allowance for credit losses, end of period	$	80		$	69

Earnings Per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Note 5 Earnings Per Share

Basic earnings per share attributable to U.S. Cellular shareholders is computed by dividing Net income attributable to U.S. Cellular shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to U.S. Cellular shareholders is computed by dividing Net income attributable to U.S. Cellular shareholders by the weighted average number of Common Shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon the exercise of outstanding stock options and the vesting of performance and restricted stock units.

The amounts used in computing earnings per common share and the effects of potentially dilutive securities on the weighted average number of Common Shares were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
(Dollars and shares in millions, except per share amounts)
Net income attributable to U.S. Cellular shareholders	$	31	$	49	$	86	$	93

Weighted average number of shares used in basic earnings per share	87		86		87		85
Effects of dilutive securities	1		—		1		1
Weighted average number of shares used in diluted earnings per share	88		86		88		86

Basic earnings per share attributable to U.S. Cellular shareholders	$	0.36	$	0.57	$	0.99	$	1.09

Diluted earnings per share attributable to U.S. Cellular shareholders	$	0.35	$	0.56	$	0.97	$	1.08

Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in average diluted shares outstanding for the calculation of Diluted earnings per share attributable to U.S. Cellular shareholders because their effects were antidilutive. The number of such Common Shares excluded was less than 1 million for both the three and six months ended June 30, 2019, and 2 million and 3 million for the three and six months ended June 30, 2018, respectively.

Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 6 Intangible Assets

Activity related to Licenses for the six months ended June 30, 2019, is presented below:



	Licenses
(Dollars in millions)
Balance at December 31, 2018	$	2,186
Acquisitions	257
Exchanges - Licenses received	26
Balance at June 30, 2019	$	2,469

In June 2019, the FCC announced by way of public notice that U.S. Cellular was the provisional winning bidder for 408 wireless spectrum licenses in its 28 GHz auction (Auction 101) and 282 wireless spectrum licenses in its 24 GHz auction (Auction 102) for an aggregate purchase price of $256 million. U.S. Cellular paid substantially all of the $256 million in the first half of 2019. The wireless spectrum licenses are expected to be granted by the FCC during 2019.

Investments in Unconsolidated Entities

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Note 7 Investments in Unconsolidated Entities

Investments in unconsolidated entities consist of amounts invested in entities in which U.S. Cellular holds a noncontrolling interest.

U.S. Cellular’s Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The measurement alternative method was elected for investments without readily determinable fair values formerly accounted for under the cost method. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Equity method investments	$	443	$	434
Measurement alternative method investments	7		7
Total investments in unconsolidated entities	$	450	$	441

The following table, which is based in part on information provided by third parties, summarizes the combined results of operations of U.S. Cellular’s equity method investments.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019			2018
(Dollars in millions)
Revenues	$	1,654	$	1,655	$	3,343		$	3,312
Operating expenses	1,187		1,199		2,402			2,407
Operating income	467		456		941			905
Other income (expense), net	4		2		(2		)	1
Net income	$	471	$	458	$	939		$	906

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Note 8 Leases

Change in Accounting Policy

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases and has since amended the standard with Accounting Standards Update 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842, Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases, Accounting Standards Update 2018-11, Leases: Targeted Improvements, and Accounting Standards Update 2018-20, Leases: Narrow-Scope Improvements for Lessors, collectively referred to as ASC 842. This standard replaces the previous lease accounting standard under ASC 840 - Leases and requires lessees to record a right-of-use (ROU) asset and lease liability for the majority of leases. U.S. Cellular adopted the provisions of ASC 842 on January 1, 2019, using a modified retrospective method. Under this method, U.S. Cellular elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings.

U.S. Cellular elected transitional practical expedients for existing leases which eliminated the requirements to reassess existing lease classification, initial direct costs, and whether contracts contain leases. U.S. Cellular also elected the practical expedient related to land easements that allows it to carry forward the accounting treatment for pre-existing land easement agreements.

The cumulative effect of the adoption of ASC 842 on U.S. Cellular’s Consolidated Balance Sheet as of January 1, 2019 is presented below.



	December 31, 2018		ASC 842 Adjustment			January 1, 2019
(Dollars in millions)
Prepaid expenses	$	63	$	(13	)	$	50
Operating lease right-of-use assets	—		899			899
Other assets and deferred charges	579		(12		)	567
Short-term operating lease liabilities	—		101			101
Other current liabilities	94		(8		)	86
Long-term operating lease liabilities	—		878			878
Other deferred liabilities and credits	389		(97		)	292

In connection with the adoption of ASC 842, U.S. Cellular recorded ROU assets and lease liabilities for its operating leases in its Consolidated Balance Sheet as of January 1, 2019. The amounts for ROU assets and lease liabilities initially were calculated as the discounted value of future lease payments. The difference between the ROU assets and the corresponding lease liabilities at January 1, 2019 as shown in the table above resulted from adjustments to ROU assets to account for various lease prepayments and straight-line expense recognition deferral balances which existed as of December 31, 2018. Finance leases are included in Property, plant and equipment and Long-term debt, net consistent with the presentation under prior accounting standards.

Lessee Agreements

A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. Nearly all of U.S. Cellular’s leases are classified as operating leases, although it does have a small number of finance leases. U.S. Cellular’s most significant leases are for land and tower spaces, network facilities, retail spaces, and offices.

U.S. Cellular has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, U.S. Cellular uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on U.S. Cellular's unsecured rates, adjusted to approximate the rates at which U.S. Cellular would be required to borrow on a collateralized basis over a term similar to the recognized lease term. U.S. Cellular applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term. The cost of nonlease components in U.S. Cellular’s lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price.

Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. U.S. Cellular’s variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the ROU assets or lease liabilities.

Lease term recognition determines the periods to which expense is allocated and also has a significant impact on the ROU asset and lease liability calculations. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when U.S. Cellular is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless U.S. Cellular is reasonably certain to exercise the options. Certain asset classes have similar lease characteristics; therefore, U.S. Cellular has applied the portfolio approach for lease term recognition for its tower space, retail, and certain ground lease asset classes.

The following table shows the components of lease cost included in the Consolidated Statement of Operations:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
(Dollars in millions)
Operating lease cost	$	41	$	80
Variable lease cost	2		4
Total lease cost	$	43	$	84

The following table shows supplemental cash flow information related to lease activities:



	Six Months Ended June 30, 2019
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75
ROU assets obtained in exchange for lease obligations:
Operating leases	$	51

The following table shows the classification of U.S. Cellular’s operating and finance leases in its Consolidated Balance Sheet:



	June 30, 2019
(Dollars in millions)
Operating Leases
Operating lease right-of-use assets	$	888

Short-term operating lease liabilities	$	101
Long-term operating lease liabilities	858
Total operating lease liabilities	$	959

Finance Leases
Property, plant and equipment	$	7
Less: Accumulated depreciation and amortization	3
Property, plant and equipment, net	$	4
Current portion of long-term debt	$	1
Long-term debt, net	3
Total finance lease liabilities	$	4

The table below shows a weighted-average analysis for lease term and discount rate for all leases:



	June 30, 2019
Weighted Average Remaining Lease Term
Operating leases	13 years
Finance leases	24 years

Weighted Average Discount Rate
Operating leases	4.5	%
Finance leases	7.0	%

The maturities of lease liabilities are as follows:



	Operating Leases		Finance Leases
(Dollars in millions)
Remainder of 2019	$	66	$	1
2020	147		1
2021	133		—
2022	117		—
2023	102		—
Thereafter	761		12
Total lease payments¹	$	1,326	$	14
Less: Imputed interest	367		10
Present value of lease liabilities	$	959	$	4


¹	Lease payments exclude $3 million of legally binding lease payments for leases signed but not yet commenced.

Lessor Agreements

U.S. Cellular's most significant lessor leases are for tower space. All of U.S. Cellular’s lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. U.S. Cellular’s lessor agreements with lease and nonlease components are generally accounted for separately.

Lease term recognition determines the periods to which revenue is allocated over the term of the lease. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when U.S. Cellular is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise.

Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. U.S. Cellular’s variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income.

The following table shows the components of lease income which are included in service revenue in the Consolidated Statement of Operations:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
(Dollars in millions)
Operating lease income	$	16	$	32

The maturities of expected lease payments to be received are as follows:



	Operating Leases
(Dollars in millions)
Remainder of 2019	$	26
2020	55
2021	42
2022	30
2023	18
Thereafter	7
Total future lease maturities	$	178

Disclosures under ASC 840

As of December 31, 2018, future minimum rental payments required under operating leases and rental receipts expected under operating leases that have noncancellable lease terms in excess of one year were as follows:



	Operating Leases Future Minimum Rental Payments		Operating Leases Future Minimum Rental Receipts
(Dollars in millions)
2019	$	154	$	58
2020	143		47
2021	128		34
2022	112		22
2023	97		10
Thereafter	769		3
Total	$	1,403	$	174

Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Variable Interest Entities [Abstract]

Variable Interest Entities

Note 9 Variable Interest Entities

Consolidated VIEs

U.S. Cellular consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. U.S. Cellular reviews these criteria initially at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in U.S. Cellular’s Form 10-K for the year ended December 31, 2018.

During 2017, U.S. Cellular formed USCC EIP LLC (Seller/Sub-Servicer), USCC Receivables Funding LLC (Transferor) and the USCC Master Note Trust (Trust), collectively the special purpose entities (SPEs), to facilitate a securitized borrowing using its equipment installment plan receivables. Under a Receivables Sale Agreement, U.S. Cellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, transfer device equipment installment plan contracts to the Seller/Sub-Servicer. The Seller/Sub-Servicer aggregates device equipment installment plan contracts, and performs servicing, collection and all other administrative activities related to accounting for the equipment installment plan contracts. The Seller/Sub-Servicer sells the eligible equipment installment plan receivables to the Transferor, a bankruptcy remote entity, which subsequently sells the receivables to the Trust. The Trust, which is bankruptcy remote and isolated from the creditors of U.S. Cellular, will be responsible for issuing asset-backed variable funding notes (Notes), which are collateralized by the equipment installment plan receivables owned by the Trust. Given that U.S. Cellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, U.S. Cellular is deemed to have a controlling financial interest in the SPEs and, therefore, consolidates them. All transactions with third parties (e.g., issuance of the asset-backed variable funding notes) will be accounted for as a secured borrowing due to the pledging of equipment installment plan contracts as collateral, significant continuing involvement in the transferred assets, subordinated interests of the cash flows, and continued evidence of control of the receivables.

The following VIEs were formed to participate in FCC auctions of wireless spectrum licenses and to fund, establish, and provide wireless service with respect to any FCC wireless spectrum licenses won in the auctions:


▪	Advantage Spectrum, L.P. (Advantage Spectrum) and Sunshine Spectrum, Inc., the general partner of Advantage Spectrum; and


▪	King Street Wireless, L.P. (King Street Wireless) and King Street Wireless, Inc., the general partner of King Street Wireless.

These particular VIEs are collectively referred to as designated entities. The power to direct the activities that most significantly impact the economic performance of these VIEs is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnerships and make all decisions to carry on the business of the partnerships. The general partner of each partnership needs the consent of the limited partner, an indirect U.S. Cellular subsidiary, to sell or lease certain wireless spectrum licenses, to make certain large expenditures, admit other partners or liquidate the limited partnerships. Although the power to direct the activities of these VIEs is shared, U.S. Cellular has the most significant level of exposure to the variability associated with the economic performance of the VIEs, indicating that U.S. Cellular is the primary beneficiary of the VIEs. Therefore, in accordance with GAAP, these VIEs are consolidated.

U.S. Cellular also consolidates other VIEs that are limited partnerships that provide wireless service. A limited partnership is a variable interest entity unless the limited partners hold substantive participating rights or kick-out rights over the general partner. For certain limited partnerships, U.S. Cellular is the general partner and manages the operations. In these partnerships, the limited partners do not have substantive kick-out or participating rights and, further, such limited partners do not have the authority to remove the general partner. Therefore, these limited partnerships are also recognized as VIEs and are consolidated under the variable interest model.

The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in U.S. Cellular’s Consolidated Balance Sheet.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Assets
Cash and cash equivalents	$	8	$	9
Short-term investments	18		17
Accounts receivable	618		611
Inventory, net	4		5
Other current assets	5		6
Assets held for sale	—		4
Licenses	649		652
Property, plant and equipment, net	91		94
Operating lease right-of-use assets	42		—
Other assets and deferred charges	322		349
Total assets	$	1,757	$	1,747

Liabilities
Current liabilities	$	35	$	34
Liabilities held for sale	—		1
Long-term operating lease liabilities	38		—
Other deferred liabilities and credits	12		16
Total liabilities	$	85	$	51

Unconsolidated VIEs

U.S. Cellular manages the operations of and holds a variable interest in certain other limited partnerships, but is not the primary beneficiary of these entities and, therefore, does not consolidate them under the variable interest model.

U.S. Cellular’s total investment in these unconsolidated entities was $4 million at both June 30, 2019 and December 31, 2018, and is included in Investments in unconsolidated entities in U.S. Cellular’s Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by U.S. Cellular in those entities.

Other Related Matters

U.S. Cellular made contributions, loans and/or advances to its VIEs totaling $208 million and $51 million, during the six months ended June 30, 2019 and 2018, respectively; of which $184 million in 2019 and $33 million in 2018, are related to USCC EIP LLC as discussed above. U.S. Cellular may agree to make additional capital contributions and/or advances to these or other VIEs and/or to their general partners to provide additional funding for operations or the development of wireless spectrum licenses granted in various auctions. U.S. Cellular may finance such amounts with a combination of cash on hand, borrowings under its revolving credit agreement and/or other long-term debt. There is no assurance that U.S. Cellular will be able to obtain additional financing on commercially reasonable terms or at all to provide such financial support.

The limited partnership agreements of Advantage Spectrum and King Street Wireless also provide the general partner with a put option whereby the general partner may require the limited partner, a subsidiary of U.S. Cellular, to purchase its interest in the limited partnership. The general partner’s put options related to its interests in King Street Wireless will become exercisable in the fourth quarter of 2019. The general partner’s put options related to its interest in Advantage Spectrum will become exercisable in 2021 and 2022. The greater of the carrying value of the general partner's investment or the value of the put option, net of any borrowings due to U.S. Cellular is recorded as Noncontrolling interests with redemption features in U.S. Cellular’s Consolidated Balance Sheet. Also in accordance with GAAP, minority share of income or changes in the redemption value of the put options, net of interest accrued on the loans, are recorded as a component of Net income attributable to noncontrolling interests, net of tax, in U.S. Cellular’s Consolidated Statement of Operations.

During the first quarter of 2018, U.S. Cellular recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $8 million and decreasing Net income attributable to U.S. Cellular shareholders by $8 million for the six months ended June 30, 2018. U.S. Cellular determined that this adjustment was not material to any of the periods impacted.

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	The accounting policies of U.S. Cellular conform to accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). Unless otherwise specified, references to accounting provisions and GAAP in these notes refer to the requirements of the FASB ASC. The consolidated financial statements include the accounts of U.S. Cellular, subsidiaries in which it has a controlling financial interest, general partnerships in which U.S. Cellular has a majority partnership interest and certain entities in which U.S. Cellular has a variable interest that require consolidation under GAAP. All material intercompany accounts and transactions have been eliminated.
Basis of Accounting	The unaudited consolidated financial statements included herein have been prepared by U.S. Cellular pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, U.S. Cellular believes that the disclosures included herein are adequate to make the information presented not misleading. Certain numbers included herein are rounded to millions for ease of presentation; however, certain calculated amounts and percentages are determined using the unrounded numbers. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in U.S. Cellular’s Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2018. The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of U.S. Cellular’s financial position as of June 30, 2019 and December 31, 2018, its results of operations and changes in equity for the three and six months ended June 30, 2019 and 2018, and its cash flows for the six months ended June 30, 2019 and 2018. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and six months ended June 30, 2019 and 2018, equaled net income. These results are not necessarily indicative of the results to be expected for the full year. U.S. Cellular has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2018, except as disclosed in Note 8 — Leases.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted	In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. U.S. Cellular is required to adopt ASU 2016-13 on January 1, 2020, using the modified retrospective approach. Early adoption is permitted; however, U.S. Cellular does not intend to adopt early. U.S. Cellular is evaluating the effects that adoption of ASU 2016-13 will have on its financial position, results of operations and disclosures. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases and has since amended the standard with Accounting Standards Update 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842, Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases, Accounting Standards Update 2018-11, Leases: Targeted Improvements, and Accounting Standards Update 2018-20, Leases: Narrow-Scope Improvements for Lessors, collectively referred to as ASC 842. This standard replaces the previous lease accounting standard under ASC 840 - Leases and requires lessees to record a right-of-use (ROU) asset and lease liability for the majority of leases. U.S. Cellular adopted the provisions of ASC 842 on January 1, 2019, using a modified retrospective method. Under this method, U.S. Cellular elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings.
Revenue From Contract With Customer	U.S. Cellular has certain contracts in which it bills an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., certain roaming agreements with other carriers). Because U.S. Cellular invoices for such items in an amount that corresponds directly with the value of the performance completed to date, U.S. Cellular may recognize revenue in that amount. As a practical expedient, these contracts are excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period. As a practical expedient, costs with an amortization period of one year or less are not capitalized.As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates.
Lessee Agreements	A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. Nearly all of U.S. Cellular’s leases are classified as operating leases, although it does have a small number of finance leases. U.S. Cellular’s most significant leases are for land and tower spaces, network facilities, retail spaces, and offices. U.S. Cellular has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, U.S. Cellular uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on U.S. Cellular's unsecured rates, adjusted to approximate the rates at which U.S. Cellular would be required to borrow on a collateralized basis over a term similar to the recognized lease term. U.S. Cellular applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term. The cost of nonlease components in U.S. Cellular’s lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price. Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. U.S. Cellular’s variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the ROU assets or lease liabilities. Lease term recognition determines the periods to which expense is allocated and also has a significant impact on the ROU asset and lease liability calculations. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when U.S. Cellular is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless U.S. Cellular is reasonably certain to exercise the options. Certain asset classes have similar lease characteristics; therefore, U.S. Cellular has applied the portfolio approach for lease term recognition for its tower space, retail, and certain ground lease asset classes.
Lessor Agreements	U.S. Cellular's most significant lessor leases are for tower space. All of U.S. Cellular’s lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. U.S. Cellular’s lessor agreements with lease and nonlease components are generally accounted for separately. Lease term recognition determines the periods to which revenue is allocated over the term of the lease. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when U.S. Cellular is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise. Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. U.S. Cellular’s variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income.
Variable Interest Entities	U.S. Cellular consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. U.S. Cellular reviews these criteria initially at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in U.S. Cellular’s Form 10-K for the year ended December 31, 2018.

Basis of Presentation (Table)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Reconciliation of cash, cash equivalents and restricted cash

The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows as of June 30, 2019 and December 31, 2018.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Cash and cash equivalents	$	528	$	580
Restricted cash included in Other current assets	4		3
Cash, cash equivalents and restricted cash in the statement of cash flows	$	532	$	583

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
(Dollars in millions)
Revenues from contracts with customers:
Retail service	$	662	$	652	$	1,322	$	1,301
Inbound roaming	44		39		78		66
Other service	35		33		66		65
Service revenues from contracts with customers	741		724		1,466		1,432
Equipment sales	216		233		441		450
Total revenues from contracts with customers¹	$	957	$	957	$	1,907	$	1,882

¹

Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers.

Contract with Customer, Assets and Liabilities

The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Accounts receivable
Customer and agents	$	880	$	908
Roaming	29		20
Other	43		32
Total¹	$	952	$	960


¹	Accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet as the amounts in this table only include receivables resulting from contracts with customers.

The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet.



	Contract Assets
(Dollars in millions)
Balance at December 31, 2018	$	9
Contract additions	6
Reclassified to receivables	(8		)
Balance at June 30, 2019	$	7

The following table provides a rollforward of 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.



	Contract Liabilities
(Dollars in millions)
Balance at December 31, 2018	$	163
Contract additions	81
Terminated contracts	(3		)
Revenue recognized	(73		)
Balance at June 30, 2019	$	168

Remaining Performance Obligations

The following table includes estimated service revenue 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 revenue 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, 2019, and may vary from actual results due to future contract modifications. As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates.



	Service Revenue
(Dollars in millions)
Remainder of 2019	$	169
2020	104
Thereafter	229
Total	$	502

Fair Value Measurements (Table)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair value measurements

U.S. Cellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below.



		June 30, 2019				December 31, 2018
	Level within the Fair Value Hierarchy	Book Value		Fair Value		Book Value		Fair Value
(Dollars in millions)
Cash and cash equivalents	1	$	528	$	528	$	580	$	580
Short-term investments	1	18		18		17		17
Long-term debt
Retail	2	917		948		917		850
Institutional	2	534		578		534		531
Other	2	174		174		180		180

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Equipment Installment Plans (Table)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Equipment installment plan receivables

The following table summarizes equipment installment plan receivables as of June 30, 2019 and December 31, 2018.



	June 30, 2019			December 31, 2018
(Dollars in millions)
Equipment installment plan receivables, gross	$	961		$	974
Allowance for credit losses	(80		)	(77		)
Equipment installment plan receivables, net	$	881		$	897

Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)	$	568		$	560
Other assets and deferred charges (Non-current portion)	313			337
Equipment installment plan receivables, net	$	881		$	897

Equipment installment plan receivables credit categories

The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows:



	June 30, 2019						December 31, 2018
	Lower Risk		Higher Risk		Total		Lower Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	888	$	9	$	897	$	904	$	17	$	921
Billed — current	43		1		44		35		1		36
Billed — past due	18		2		20		15		2		17
Equipment installment plan receivables, gross	$	949	$	12	$	961	$	954	$	20	$	974

Equipment installment plans allowance for credit losses

Activity for the six months ended June 30, 2019 and 2018, in the allowance for credit losses for equipment installment plan receivables was as follows:



	June 30, 2019			June 30, 2018
(Dollars in millions)
Allowance for credit losses, beginning of period	$	77		$	65
Bad debts expense	38			30
Write-offs, net of recoveries	(35		)	(26		)
Allowance for credit losses, end of period	$	80		$	69

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Earnings per share

The amounts used in computing earnings per common share and the effects of potentially dilutive securities on the weighted average number of Common Shares were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
(Dollars and shares in millions, except per share amounts)
Net income attributable to U.S. Cellular shareholders	$	31	$	49	$	86	$	93

Weighted average number of shares used in basic earnings per share	87		86		87		85
Effects of dilutive securities	1		—		1		1
Weighted average number of shares used in diluted earnings per share	88		86		88		86

Basic earnings per share attributable to U.S. Cellular shareholders	$	0.36	$	0.57	$	0.99	$	1.09

Diluted earnings per share attributable to U.S. Cellular shareholders	$	0.35	$	0.56	$	0.97	$	1.08

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Licenses

Activity related to Licenses for the six months ended June 30, 2019, is presented below:



	Licenses
(Dollars in millions)
Balance at December 31, 2018	$	2,186
Acquisitions	257
Exchanges - Licenses received	26
Balance at June 30, 2019	$	2,469

Investments in Unconsolidated Entities (Tables)

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity and measurement alternative method investments

U.S. Cellular’s Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The measurement alternative method was elected for investments without readily determinable fair values formerly accounted for under the cost method. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Equity method investments	$	443	$	434
Measurement alternative method investments	7		7
Total investments in unconsolidated entities	$	450	$	441

Equity method investments, summarized results of operations

The following table, which is based in part on information provided by third parties, summarizes the combined results of operations of U.S. Cellular’s equity method investments.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019			2018
(Dollars in millions)
Revenues	$	1,654	$	1,655	$	3,343		$	3,312
Operating expenses	1,187		1,199		2,402			2,407
Operating income	467		456		941			905
Other income (expense), net	4		2		(2		)	1
Net income	$	471	$	458	$	939		$	906

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of new accounting pronouncements and changes in accounting principles

The cumulative effect of the adoption of ASC 842 on U.S. Cellular’s Consolidated Balance Sheet as of January 1, 2019 is presented below.



	December 31, 2018		ASC 842 Adjustment			January 1, 2019
(Dollars in millions)
Prepaid expenses	$	63	$	(13	)	$	50
Operating lease right-of-use assets	—		899			899
Other assets and deferred charges	579		(12		)	567
Short-term operating lease liabilities	—		101			101
Other current liabilities	94		(8		)	86
Long-term operating lease liabilities	—		878			878
Other deferred liabilities and credits	389		(97		)	292

Components of lease expense

The following table shows the components of lease cost included in the Consolidated Statement of Operations:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
(Dollars in millions)
Operating lease cost	$	41	$	80
Variable lease cost	2		4
Total lease cost	$	43	$	84

Supplemental cash flow information related to leases

The following table shows supplemental cash flow information related to lease activities:



	Six Months Ended June 30, 2019
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75
ROU assets obtained in exchange for lease obligations:
Operating leases	$	51

Supplemental balance sheet information related to leases

The following table shows the classification of U.S. Cellular’s operating and finance leases in its Consolidated Balance Sheet:



	June 30, 2019
(Dollars in millions)
Operating Leases
Operating lease right-of-use assets	$	888

Short-term operating lease liabilities	$	101
Long-term operating lease liabilities	858
Total operating lease liabilities	$	959

Finance Leases
Property, plant and equipment	$	7
Less: Accumulated depreciation and amortization	3
Property, plant and equipment, net	$	4
Current portion of long-term debt	$	1
Long-term debt, net	3
Total finance lease liabilities	$	4

Schedule of weighted average remaining lease term and weighted average discount rate related to leases

The table below shows a weighted-average analysis for lease term and discount rate for all leases:



	June 30, 2019
Weighted Average Remaining Lease Term
Operating leases	13 years
Finance leases	24 years

Weighted Average Discount Rate
Operating leases	4.5	%
Finance leases	7.0	%

Maturities of lease liabilities

The maturities of lease liabilities are as follows:



	Operating Leases		Finance Leases
(Dollars in millions)
Remainder of 2019	$	66	$	1
2020	147		1
2021	133		—
2022	117		—
2023	102		—
Thereafter	761		12
Total lease payments¹	$	1,326	$	14
Less: Imputed interest	367		10
Present value of lease liabilities	$	959	$	4

¹

Lease payments exclude $3 million of legally binding lease payments for leases signed but not yet commenced.

Lease income

The following table shows the components of lease income which are included in service revenue in the Consolidated Statement of Operations:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
(Dollars in millions)
Operating lease income	$	16	$	32

Maturities of expected lease revenues

The maturities of expected lease payments to be received are as follows:



	Operating Leases
(Dollars in millions)
Remainder of 2019	$	26
2020	55
2021	42
2022	30
2023	18
Thereafter	7
Total future lease maturities	$	178

Lease commitments

As of December 31, 2018, future minimum rental payments required under operating leases and rental receipts expected under operating leases that have noncancellable lease terms in excess of one year were as follows:



	Operating Leases Future Minimum Rental Payments		Operating Leases Future Minimum Rental Receipts
(Dollars in millions)
2019	$	154	$	58
2020	143		47
2021	128		34
2022	112		22
2023	97		10
Thereafter	769		3
Total	$	1,403	$	174

Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Variable Interest Entities [Abstract]

Consolidated VIE assets and liabilities

The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in U.S. Cellular’s Consolidated Balance Sheet.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Assets
Cash and cash equivalents	$	8	$	9
Short-term investments	18		17
Accounts receivable	618		611
Inventory, net	4		5
Other current assets	5		6
Assets held for sale	—		4
Licenses	649		652
Property, plant and equipment, net	91		94
Operating lease right-of-use assets	42		—
Other assets and deferred charges	322		349
Total assets	$	1,757	$	1,747

Liabilities
Current liabilities	$	35	$	34
Liabilities held for sale	—		1
Long-term operating lease liabilities	38		—
Other deferred liabilities and credits	12		16
Total liabilities	$	85	$	51

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Basis of Presentation - Narrative (Details)	Jun. 30, 2019
TDS \| U.S. Cellular
Basis of Presentation [Line Items]
Ownership percentage	82.00%

Basis of Presentation - Restricted Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 528	$ 580
Restricted cash included in Other current assets	4	3
Cash, cash equivalents and restricted cash in the statement of cash flows	$ 532	$ 583	$ 597	$ 352

Revenue Recognition - Disaggregation Of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of revenue
Revenue from contracts with customers	$ 957	$ 957	$ 1,907	$ 1,882
Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	741	724	1,466	1,432
Transferred over time \| Retail service
Disaggregation of revenue
Revenue from contracts with customers	662	652	1,322	1,301
Transferred over time \| Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	44	39	78	66
Transferred over time \| Other service
Disaggregation of revenue
Revenue from contracts with customers	35	33	66	65
Transferred at point in time \| Equipment sales
Disaggregation of revenue
Revenue from contracts with customers	$ 216	$ 233	$ 441	$ 450

Revenue Recognition - Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts receivable
Customers and agents	$ 880	$ 908
Roaming	29	20
Other	47	46
Accounts receivable from contract with customer
Accounts receivable
Customers and agents	880	908
Roaming	29	20
Other	43	32
Total	$ 952	$ 960

Revenue Recognition - Contract Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Contract Assets
Balance, beginning of period	$ 9
Contract additions	6
Reclassified to receivables	(8)
Balance, end of period	$ 7

Revenue Recognition - Contract Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Contract Liabilities
Balance, beginning of period	$ 163
Contract additions	81
Terminated contracts	(3)
Revenue recognized	(73)
Balance, end of period	$ 168

Revenue Recognition - Performance Obligations (Details) $ in Millions	Jun. 30, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 502
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 169
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of remaining performance obligation, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 104
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 229
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of remaining performance obligation, period

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Capitalized Contract Cost
Capitalized contract cost related to commission fees	$ 131		$ 131		$ 139
Amortization of contract cost assets	$ 27	$ 26	$ 55	$ 54
Minimum
Capitalized Contract Cost
Capitalized contract cost, amortization period	15 months		15 months
Maximum
Capitalized Contract Cost
Capitalized contract cost, amortization period	30 months		30 months

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Financial Instruments
Cash and cash equivalents	$ 528	$ 580
Short-term investments	$ 18	17
7.25% 2063 Senior Notes
Financial Instruments
Interest rate	7.25%
7.25% 2064 Senior Notes
Financial Instruments
Interest rate	7.25%
6.95% Senior Notes
Financial Instruments
Interest rate	6.95%
6.7% Senior Notes
Financial Instruments
Interest rate	6.70%
Book Value
Financial Instruments
Cash and cash equivalents	$ 528	580
Short-term investments	18	17
Book Value \| Retail
Financial Instruments
Long-term debt	917	917
Book Value \| Institutional
Financial Instruments
Long-term debt	534	534
Book Value \| Other
Financial Instruments
Long-term debt	174	180
Fair Value \| Level 1
Financial Instruments
Cash and cash equivalents	528	580
Short-term investments	18	17
Fair Value \| Level 2 \| Retail
Financial Instruments
Long-term debt	948	850
Fair Value \| Level 2 \| Institutional
Financial Instruments
Long-term debt	578	531
Fair Value \| Level 2 \| Other
Financial Instruments
Long-term debt	$ 174	$ 180
Interest rate \| Institutional and Other \| Minimum
Financial Instruments
Fair value assumption, interest rate	4.16%	5.03%
Interest rate \| Institutional and Other \| Maximum
Financial Instruments
Fair value assumption, interest rate	6.05%	6.97%

Equipment Installment Plans - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Guarantee liability	$ 10	$ 11

Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, gross	$ 961	$ 974
Allowance for credit losses	(80)	(77)
Equipment installment plan receivables, net	881	897
Accounts receivable — Customers and agents (Current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	568	560
Other assets and deferred charges (Non-current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	$ 313	$ 337

Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	$ 961	$ 974
Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	897	921
Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	44	36
Equipment installment plan receivables, past due	20	17
Lower Risk
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	949	954
Lower Risk \| Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	888	904
Lower Risk \| Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	43	35
Equipment installment plan receivables, past due	18	15
Higher Risk
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	12	20
Higher Risk \| Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	9	17
Higher Risk \| Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	1	1
Equipment installment plan receivables, past due	$ 2	$ 2

Equipment Installment Plans - Allowance for Credit Losses (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Allowance for credit losses
Allowance for credit losses, beginning of period	$ 77
Allowance for credit losses, end of period	80
Equipment Installment Plan Receivable
Allowance for credit losses
Allowance for credit losses, beginning of period	77	$ 65
Bad debts expense	38	30
Write-offs, net of recoveries	(35)	(26)
Allowance for credit losses, end of period	$ 80	$ 69

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net income attributable to U.S. Cellular shareholders	$ 31	$ 49	$ 86	$ 93
Weighted average number of shares used in basic earnings per share (in shares)	87	86	87	85
Effects of dilutive securities (in shares)	1	0	1	1
Weighted average number of shares used in diluted earnings per share (in shares)	88	86	88	86
Basic earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.36	$ 0.57	$ 0.99	$ 1.09
Diluted earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.35	$ 0.56	$ 0.97	$ 1.08

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		2		3
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1		1

Intangible Assets (Details) - Licenses $ in Millions	6 Months Ended
Intangible Assets (Details) - Licenses $ in Millions	Jun. 30, 2019 USD ($)
Licenses
Balance, beginning of period	$ 2,186
Acquisitions	257
Exchanges - Licenses received	26
Balance, end of period	$ 2,469

Intangible Assets - Narrative (Details) $ in Millions	6 Months Ended
Intangible Assets - Narrative (Details) $ in Millions	Jun. 30, 2019 USD ($) license
Licenses
Total winning bid \| $	$ 256
Auction 101
Licenses
Licenses won	408
Auction 102
Licenses
Licenses won	282

Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 443		$ 443		$ 434
Measurement alternative method investments	7		7		7
Total investments in unconsolidated entities	450		450		$ 441
Equity method investments, combined income statements
Revenues	1,654	$ 1,655	3,343	$ 3,312
Operating expenses	1,187	1,199	2,402	2,407
Operating income	467	456	941	905
Other income (expense), net	4	2	(2)	1
Net income	$ 471	$ 458	$ 939	$ 906

Leases - Narrative (Details) $ in Millions	Jun. 30, 2019 USD ($)
Minimum \| ASC 842 \| Retained earnings
Leases
Cumulative effect of accounting change	$ 0

Leases - Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases - Consolidated Balance Sheet
Prepaid expenses	$ 48	$ 50	$ 63
Operating lease right-of-use assets	888	899	0
Other assets and deferred charges	527	567	579
Short-term operating lease liabilities	101	101	0
Other current liabilities	65	86	94
Long-term operating lease liabilities	858	878	0
Other deferred liabilities and credits	$ 299	292	$ 389
ASC 842 Adjustment
Leases - Consolidated Balance Sheet
Prepaid expenses		(13)
Operating lease right-of-use assets		899
Other assets and deferred charges		(12)
Short-term operating lease liabilities		101
Other current liabilities		(8)
Long-term operating lease liabilities		878
Other deferred liabilities and credits		$ (97)

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2019
Lease, Cost [Abstract]
Operating lease cost	$ 41	$ 80
Variable lease cost	2	4
Total lease cost	$ 43	$ 84

Leases - Supplemental Cash Flow Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 75
ROU assets obtained in exchange for lease obligations:
Operating leases	$ 51

Leases - Classification of Operating and Finance Leases (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Leases
Operating lease right-of-use assets	$ 888	$ 899	$ 0
Short-term operating lease liabilities	101	101	0
Long-term operating lease liabilities	858	$ 878	0
Total operating lease liabilities	959
Finance Leases
Property, plant and equipment	7,980		7,778
Less: Accumulated depreciation and amortization	5,826		5,576
Property, plant and equipment, net	2,154		2,202
Current portion of long-term debt	19		19
Long-term debt, net	1,596		$ 1,605
Total finance lease liabilities	4
Operating leases
Operating Leases
Operating lease right-of-use assets	888
Short-term operating lease liabilities	101
Long-term operating lease liabilities	858
Total operating lease liabilities	959
Finance leases
Finance Leases
Property, plant and equipment	7
Less: Accumulated depreciation and amortization	3
Property, plant and equipment, net	4
Current portion of long-term debt	1
Long-term debt, net	3
Total finance lease liabilities	$ 4

Leases - Lease Term and Discount Rate (Details)	Jun. 30, 2019
Weighted Average Remaining Lease Term
Operating leases	13 years
Finance leases	24 years
Weighted Average Discount Rate
Operating leases	4.50%
Finance leases	7.00%

Leases - Maturities of Lease Liabilities (Details) $ in Millions	Jun. 30, 2019 USD ($)
Operating Leases Future Minimum Rental Payments
Remainder of 2019	$ 66
2020	147
2021	133
2022	117
2023	102
Thereafter	761
Total lease payments	1,326
Less: Imputed interest	367
Present value of lease liabilities	959
Finance Leases
Remainder of 2019	1
2020	1
2021	0
2022	0
2023	0
Thereafter	12
Total lease payments	14
Less: Imputed interest	10
Present value of lease liabilities	4
Legally binding lease payments for leases signed but not yet commenced	$ 3

Leases - Components of Lease Income (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease income	$ 16	$ 32

Leases - Maturities of Expected Lease Revenues (Details) $ in Millions	Jun. 30, 2019 USD ($)
Leases [Abstract]
Remainder of 2019	$ 26
2020	55
2021	42
2022	30
2023	18
Thereafter	7
Total future lease maturities	$ 178

Leases - Minimum Lease Obligations (Details) $ in Millions	Dec. 31, 2018 USD ($)
Operating Leases Future Minimum Rental Payments
2019	$ 154
2020	143
2021	128
2022	112
2023	97
Thereafter	769
Total	1,403
Operating Leases Future Minimum Rental Receipts
2019	58
2020	47
2021	34
2022	22
2023	10
Thereafter	3
Total	$ 174

Variable Interest Entities - Consolidataed Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 528		$ 580
Short-term investments	18		17
Accounts receivable	880		908
Inventory, net	146		142
Other current assets	36		34
Assets held for sale	0		54
Licenses	2,469		2,186
Property, plant and equipment, net	2,154		2,202
Operating lease right-of-use assets	888	$ 899	0
Other assets and deferred charges	527	567	579
Liabilities
Current liabilities	747		691
Liabilities held for sale	0		1
Long-term operating lease liabilities	858	$ 878	0
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	8		9
Short-term investments	18		17
Accounts receivable	618		611
Inventory, net	4		5
Other current assets	5		6
Assets held for sale	0		4
Licenses	649		652
Property, plant and equipment, net	91		94
Operating lease right-of-use assets	42		0
Other assets and deferred charges	322		349
Total assets	1,757		1,747
Liabilities
Current liabilities	35		34
Liabilities held for sale	0		1
Long-term operating lease liabilities	38		0
Other deferred liabilities and credits	12		16
Total liabilities	$ 85		$ 51

Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Variable Interest Entity [Line Items]
Investments in unconsolidated entities, maximum exposure	$ 4		$ 4
Capital contributions, loans or advances	$ 208	$ 51
King Street Wireless out-of-period adjustment
Variable Interest Entity [Line Items]
Immaterial error correction	During the first quarter of 2018, U.S. Cellular recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $8 million and decreasing Net income attributable to U.S. Cellular shareholders by $8 million for the six months ended June 30, 2018. U.S. Cellular determined that this adjustment was not material to any of the periods impacted.
Net income attributable to noncontrolling interests, net of tax \| King Street Wireless out-of-period adjustment
Variable Interest Entity [Line Items]
Out-of-period adjustment		8
Net income attributable to U.S. Cellular shareholders \| King Street Wireless out-of-period adjustment
Variable Interest Entity [Line Items]
Out-of-period adjustment		(8)
USCC EIP LLC
Variable Interest Entity [Line Items]
Capital contributions, loans or advances	$ 184	$ 33