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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 16, 2024
USM Logo.jpg
UNITED STATES CELLULAR CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 001-09712 62-1147325
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

8410 West Bryn Mawr, Chicago, Illinois 60631
(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (773) 399-8900

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Shares, $1 par valueUSMNew York Stock Exchange
6.25% Senior Notes due 2069UZDNew York Stock Exchange
5.50% Senior Notes due 2070UZENew York Stock Exchange
5.50% Senior Notes due 2070UZFNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐
Emerging growth company
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02.  Results of Operations and Financial Condition
As previously announced, on May 24, 2024, Telephone and Data Systems, Inc. (TDS), United States Cellular Corporation (UScellular), T-Mobile US, Inc. (T-Mobile) and USCC Wireless Holdings, LLC entered into a Securities Purchase Agreement (Purchase Agreement) pursuant to which, among other items, UScellular has agreed to sell its wireless operations and select spectrum assets to T-Mobile for $4.4 billion, payable in cash and the assumption of certain debt, subject to certain potential adjustments as further described in the Purchase Agreement (Transaction).

In its Annual Report on Form 10-K for the year ended December 31, 2023 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, UScellular reported its operations in one reportable segment.

Due to the planned disposal of the UScellular wireless operations pursuant to the Purchase Agreement, UScellular is disaggregating its reportable segments to provide relevant financial information for both internal reporting and external reporting purposes. Effective for the quarter ending June 30, 2024, UScellular will have two reportable segments:

•“Wireless”: Operation of wireless network and provision of wireless services in markets throughout the United States
•“Towers”: Operation of owned cell towers to lease space to wireless carriers, including the Wireless business as well as third-party carriers

UScellular is providing updated financial information in Exhibit 99.1 to report historical financial performance under the new segment structure for the quarterly and annual periods of 2022, 2023 and 2024. This information includes certain non-GAAP financial measures that are useful in evaluating the effectiveness of operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance.

UScellular intends to begin reporting its financial results based on the new segment structure with the filing of its Quarterly Report on Form 10-Q for the quarter ending June 30, 2024, with prior periods reported accordingly.

Item 7.01.  Regulation FD Disclosure

UScellular made available an investor presentation to provide additional details on its tower operations in the context of the Transaction. A copy of the investor presentation is furnished herewith as Exhibit 99.2.

Item 9.01.  Financial Statements and Exhibits
(d)   Exhibits
Exhibit Number Description of Exhibits
99.1
99.2
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.


SIGNATURES
    
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
    
  UNITED STATES CELLULAR CORPORATION
  
    
Date:July 16, 2024By:/s/ Douglas W. Chambers
   Douglas W. Chambers
   Executive Vice President, Chief Financial Officer and Treasurer



Exhibit 99.1
United States Cellular Corporation
Financial Highlights by Segment
(Unaudited)

UScellular ConsolidatedQ1 2024
(Dollars in millions)
Operating revenues
Service1
$754 
Equipment sales196 
Total operating revenues950 
System operations (excluding Depreciation, amortization and accretion reported below)182 
Cost of equipment sold216 
Selling, general and administrative331 
Depreciation, amortization and accretion165 
(Gain) loss on asset disposals, net6 
(Gain) loss on license sales and exchanges, net(1)
Operating income51
Equity in earnings of unconsolidated entities42 
Interest and dividend income2 
Interest expense(43)
Income before income taxes52 
Income tax expense28 
Net income24 
Add back:
Depreciation, amortization and accretion165 
Expenses related to strategic alternatives review7 
(Gain) loss on asset disposals, net6 
(Gain) loss on license sales and exchanges, net(1)
Interest expense43 
Income tax expense28 
Adjusted EBITDA (Non-GAAP)2
$272 


















WirelessQ1 2024
(Dollars in millions)
Operating revenues
Service$729 
Equipment sales196 
Total operating revenues925 
System operations (excluding Depreciation, amortization and accretion reported below)197 
Cost of equipment sold216 
Selling, general and administrative324 
Depreciation, amortization and accretion154 
(Gain) loss on asset disposals, net6 
(Gain) loss on license sales and exchanges, net(1)
Operating income29 
Add back:
Depreciation, amortization and accretion154 
Expenses related to strategic alternatives review7 
(Gain) loss on asset disposals, net6 
(Gain) loss on license sales and exchanges, net(1)
Adjusted EBITDA (Non-GAAP)2
$195 




TowersQ1 2024
(Dollars in millions)
Operating revenues
Service - Third-Party$25 
Service - Intracompany33 
Total operating revenues58 
System operations (excluding Depreciation, amortization and accretion reported below)18 
Selling, general and administrative7 
Depreciation, amortization and accretion11 
Operating income22 
Add back:
Depreciation, amortization and accretion11 
Adjusted EBITDA (Non-GAAP)2
$33 













UScellular ConsolidatedQ1 2023Q2 2023Q3 2023Q4 2023Full Year 2023
(Dollars in millions)
Operating revenues
Service1
$767 $760 $762 $755 $3,044 
Equipment sales219 197 201 245 862 
Total operating revenues986 957 963 1,000 3,906 
System operations (excluding Depreciation, amortization and accretion reported below)182 190 185 183 740 
Cost of equipment sold253 228 228 280 988 
Selling, general and administrative345 341 333 349 1,368 
Depreciation, amortization and accretion170 161 159 166 656 
(Gain) loss on asset disposals, net10 3 1 3 17 
(Gain) loss on license sales and exchanges, net— — — (2)(2)
Operating income2634 57 21 139 
Equity in earnings of unconsolidated entities44 38 40 37 158 
Interest and dividend income2 3 3 2 10 
Interest expense(47)(51)(50)(49)(196)
Income before income taxes25 24 50 11 111 
Income tax expense (benefit)11 19 27 (4)53 
Net income14 5 23 15 58 
Add back:
Depreciation, amortization and accretion170 161 159 166 656 
Expenses related to strategic alternatives review— — 3 6 8 
(Gain) loss on asset disposals, net10 3 1 3 17 
(Gain) loss on license sales and exchanges, net— — — (2)(2)
Interest expense47 51 50 49 196 
Income tax expense (benefit)11 19 27 (4)53 
Adjusted EBITDA (Non-GAAP)2
$252 $239 $263 $233 $986 



WirelessQ1 2023Q2 2023Q3 2023Q4 2023Full Year 2023
(Dollars in millions)
Operating revenues
Service$742 $735 $737 $730 $2,943 
Equipment sales219 197 201 245 862 
Total operating revenues961 932 938 975 3,805 
System operations (excluding Depreciation, amortization and accretion reported below)197 203 199 197 794 
Cost of equipment sold253 228 228 280 988 
Selling, general and administrative336 333 324 340 1,334 
Depreciation, amortization and accretion158 149 148 155 610 
(Gain) loss on asset disposals, net10 3 1 5 19 
(Gain) loss on license sales and exchanges, net— — — (2)(2)
Operating income7 16 38 — 62 
Add back:
Depreciation, amortization and accretion158 149 148 155 610 
Expenses related to strategic alternatives review— — 3 6 8 
(Gain) loss on asset disposals, net10 3 1 5 19 
(Gain) loss on license sales and exchanges, net— — — (2)(2)
Adjusted EBITDA (Non-GAAP)2
$175 $168 $190 $164 $697 



TowersQ1 2023Q2 2023Q3 2023Q4 2023Full Year 2023
(Dollars in millions)
Operating revenues
Service - Third-Party$25 $25 $25 $25 $101 
Service - Intracompany32 32 32 32 127 
Total operating revenues57 57 57 57 228 
System operations (excluding Depreciation, amortization and accretion reported below)17 19 18 18 73 
Selling, general and administrative9 8 9 9 34 
Depreciation, amortization and accretion12 12 11 11 46 
(Gain) loss on asset disposals, net— — — (2)(2)
Operating income19 18 19 21 77 
Add back:
Depreciation, amortization and accretion12 12 11 11 46 
(Gain) loss on asset disposals, net— — — (2)(2)
Adjusted EBITDA (Non-GAAP)2
$31 $30 $30 $30 $121 



UScellular ConsolidatedQ1 2022Q2 2022Q3 2022Q4 2022Full Year 2022
(Dollars in millions)
Operating revenues
Service1
$787 $783 $781 $774 $3,125 
Equipment sales223 244 302 274 1,044 
Total operating revenues1,010 1,027 1,083 1,048 4,169 
System operations (excluding Depreciation, amortization and accretion reported below)185 192 197 181 755 
Cost of equipment sold257 275 354 330 1,216 
Selling, general and administrative325 339 369 374 1,408 
Depreciation, amortization and accretion171 172 177 179 700 
Loss on impairment of licenses— 3 — — 3 
(Gain) loss on asset disposals, net2 6 1 11 19 
(Gain) loss on sale of business and other exit costs, net(1)— — — (1)
Operating income (loss)71 40 (15)(27)69 
Equity in earnings of unconsolidated entities45 37 40 36 158 
Interest and dividend income1 3 2 3 8 
Interest expense(33)(40)(42)(49)(163)
Income (loss) before income taxes84 40 (15)(37)72 
Income tax expense (benefit)32 18 (3)(9)37 
Net income (loss)52 22 (12)(28)35 
Add back:
Depreciation, amortization and accretion171 172 177 179 700 
Loss on impairment of licenses— 3 — — 3 
(Gain) loss on asset disposals, net2 6 1 11 19 
(Gain) loss on sale of business and other exit costs, net(1)— — — (1)
Interest expense33 40 42 49 163 
Income tax expense (benefit)32 18 (3)(9)37 
Adjusted EBITDA (Non-GAAP)2
$289 $261 $205 $202 $956 



WirelessQ1 2022Q2 2022Q3 2022Q4 2022Full Year 2022
(Dollars in millions)
Operating revenues
Service$765 $760 $758 $750 $3,032 
Equipment sales223 244 302 274 1,044 
Total operating revenues988 1,004 1,060 1,024 4,076 
System operations (excluding Depreciation, amortization and accretion reported below)200 205 209 194 807 
Cost of equipment sold257 275 354 330 1,216 
Selling, general and administrative318 331 361 366 1,376 
Depreciation, amortization and accretion159 161 166 167 655 
Loss on impairment of licenses— 3 — — 3 
(Gain) loss on asset disposals, net2 6 1 11 19 
(Gain) loss on sale of business and other exit costs, net(1)— — — (1)
Operating income (loss)53 23 (31)(44)1 
Add back:
Depreciation, amortization and accretion159 161 166 167 655 
Loss on impairment of licenses— 3 — — 3 
(Gain) loss on asset disposals, net2 6 1 11 19 
(Gain) loss on sale of business and other exit costs, net(1)— — — (1)
Adjusted EBITDA (Non-GAAP)2
$213 $193 $136 $134 $677 



TowersQ1 2022Q2 2022Q3 2022Q4 2022Full Year 2022
(Dollars in millions)
Operating revenues
Service - Third-Party$22 $23 $23 $24 $93 
Service - Intracompany31 31 31 31 123 
Total operating revenues53 54 54 55 216 
System operations (excluding Depreciation, amortization and accretion reported below)16 18 19 18 71 
Selling, general and administrative7 8 8 8 32 
Depreciation, amortization and accretion12 11 11 12 45 
Operating income18 17 16 17 68 
Add back:
Depreciation, amortization and accretion12 11 11 12 45 
Adjusted EBITDA (Non-GAAP)2
$30 $28 $27 $29 $113 

Numbers may not foot due to rounding.

1Consolidated amounts include elimination of intracompany charges for the use of company-owned towers by the Wireless segment.
2Adjusted earnings before interest, taxes, depreciation, amortization and accretion (Adjusted EBITDA) is a segment measure reported to the chief operating decision maker for purposes of assessing the segments' performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. UScellular believes Adjusted EBITDA is a useful measure of UScellular’s operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of UScellular's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance.


Exhibit 99.2
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v3.24.2
Document and Entity Information Document
Jul. 16, 2024
Entity Central Index Key 0000821130
Entity Emerging Growth Company false
Pre-commencement Issuer Tender Offer false
Pre-commencement Tender Offer false
Soliciting Material false
Written Communications false
Document Type 8-K
Document Period End Date Jul. 16, 2024
Entity Incorporation, State or Country Code DE
Entity Registrant Name UNITED STATES CELLULAR CORPORATION
Entity File Number 001-09712
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
Amendment Flag false
Common Shares  
Title of 12(b) Security Common Shares, $1 par value
Trading Symbol USM
Security Exchange Name NYSE
6.25% Senior Notes  
Title of 12(b) Security 6.25% Senior Notes due 2069
Trading Symbol UZD
Security Exchange Name NYSE
5.50% Senior Notes  
Title of 12(b) Security 5.50% Senior Notes due 2070
Trading Symbol UZE
Security Exchange Name NYSE
5.50% Senior Notes  
Title of 12(b) Security 5.50% Senior Notes due 2070
Trading Symbol UZF
Security Exchange Name NYSE
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