United States Cellular Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>United States Cellular Corp. has filed its 2023 annual report (10-K) detailing financial performance and operations for the year ending December 31, 2023.</b>

AI Summary

UNITED STATES CELLULAR CORP (UZD) filed a Annual Report (10-K) with the SEC on February 16, 2024. United States Cellular Corp. filed its 2023 Form 10-K on February 16, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Radio Telephone Communications. Key financial data for the fiscal year ending December 31, 2023, is included. The report details various financial statement line items and disclosures.

Why It Matters

For investors and stakeholders tracking UNITED STATES CELLULAR CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of U.S. Cellular's financial health, operational performance, and strategic positioning within the telecommunications industry for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial stability, revenue streams, debt levels, and potential risks, informing investment decisions and market analysis.

Risk Assessment

Risk Level: medium — UNITED STATES CELLULAR CORP shows moderate risk based on this filing. The company operates in the highly competitive telecommunications sector, facing challenges from larger players and evolving technologies, which could impact its market share and profitability.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand U.S. Cellular's competitive landscape and future growth prospects.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-16 — Filing Date (Date filed)
• 123 — Public Document Count (Number of documents in the filing)
• 4812 — SIC Code (Standard Industrial Classification code)

Key Players & Entities

• UNITED STATES CELLULAR CORP (company) — Filer name
• 0000821130 (company) — Central Index Key
• RADIO TELEPHONE COMMUNICATIONS (company) — Standard Industrial Classification
• 8410 W BRYN MAWR AVE STE 700 (company) — Business Address
• CHICAGO (company) — Business Address City
• IL (company) — Business Address State
• 60631 (company) — Business Address Zip
• 7733998900 (company) — Business Phone

FAQ

Industry Context

United States Cellular Corp. operates within the telecommunications industry, specifically focusing on radio telephone communications services.

Regulatory Implications

The company is subject to regulations governing the telecommunications sector in the United States, overseen by bodies like the FCC.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends, profitability, and debt structure.
2. Review the Management's Discussion and Analysis (MD&A) for insights into operational performance and strategic outlook.
3. Examine the risk factors section to understand potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-16: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $1 — nge on which registered Common Shares, $1 par value USM New York Stock Exchange

Filing Documents

• usm-20231231.htm (10-K) — 2091KB
• usm202310-kexhibit411.htm (EX-4.11) — 55KB
• usm202310-kexhibit21.htm (EX-21) — 55KB
• usm202310-kexhibit23.htm (EX-23) — 2KB
• usm202310-kexhibit311.htm (EX-31.1) — 11KB
• usm202310-kexhibit312.htm (EX-31.2) — 11KB
• usm202310-kexhibit321.htm (EX-32.1) — 5KB
• usm202310-kexhibit322.htm (EX-32.2) — 5KB
• usm202310-kexhibit97.htm (EX-97) — 23KB
• usm-20231231_g1.jpg (GRAPHIC) — 9KB
• usm-20231231_g2.jpg (GRAPHIC) — 161KB
• usm-20231231_g3.jpg (GRAPHIC) — 363KB
• usm-20231231_g4.jpg (GRAPHIC) — 34KB
• usm-20231231_g5.jpg (GRAPHIC) — 55KB
• usm-20231231_g6.jpg (GRAPHIC) — 24KB
• usm-20231231_g7.jpg (GRAPHIC) — 26KB
• 0000821130-24-000007.txt (&nbsp;) — 13201KB
• usm-20231231.xsd (EX-101.SCH) — 73KB
• usm-20231231_cal.xml (EX-101.CAL) — 111KB
• usm-20231231_def.xml (EX-101.DEF) — 533KB
• usm-20231231_lab.xml (EX-101.LAB) — 1038KB
• usm-20231231_pre.xml (EX-101.PRE) — 763KB
• usm-20231231_htm.xml (XML) — 1668KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 6 Item 1B. Unresolved Staff Comments 17 Item 1C. Cybersecurity 17 Item 2.

Properties

Properties 17 Item 3.

Legal Proceedings

Legal Proceedings 17 Item 4. Mine Safety Disclosures 17 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6. [Reserved] 19 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 43 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 78 Item 9A.

Controls and Procedures

Controls and Procedures 78 Item 9B. Other Information 78 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 78 Part III Item 10. Directors, Executive Officers and Corporate Governance 79 Item 11.

Executive Compensation

Executive Compensation 79 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79 Item 13. Certain Relationships and Related Transactions, and Director Independence 79 Item 14. Principal Accountant Fees and Services 79 Part IV Item 15. Exhibits and Financial Statement Schedules 80 Item 16. Form 10-K Summary 87

Signatures

Signatures Table of Contents PART I

Business

Item 1. Business General United States Cellular Corporation (UScellular) provides wireless telecommunications services to customers with 4.6 million retail connections in portions of 21 states collectively representing a total population of 32 million. UScellular operates in one reportable segment, and all of its wireless operating markets are in the United States. UScellular is a majority-owned subsidiary of Telephone and Data Systems, Inc. As of December 31, 2023, TDS owns 83% of UScellular's Common Shares, has the voting power to elect all of the directors of UScellular and controls 96% of the voting power in matters other than the election of directors of UScellular. The map below highlights UScellular's areas of operations. 1 Table of Contents Operating Strategy and Community Focus UScellular's strategy is to attract and retain customers by providing a high-quality network, outstanding customer service and competitive devices, plans and pricing - all provided with a community focus. UScellular operates a regional wireless network. UScellular's interests in wireless spectrum licenses include both direct interests whereby UScellular is the licensee and investment interests in entities which are licensees; together, these direct and investment interests involve operating and non-operating wireless spectrum licenses covering portions of 30 states and a total population of approximately 51 million as of December 31, 2023. On August 4, 2023, TDS and UScellular announced that the Boards of Directors of both companies decided to initiate a process to explore a range of strategic alternatives for UScellular. At this time, UScellular cannot predict the ultimate outcome of such process or estimate the potential impact of such process on the financial statements. As part of its business development strategy, UScellular may periodically be engaged in negotiations relating to strategic partnerships and/or the acquisition, exchange or disposition of companies, st

Risk Factors

Item 1A. Risk Factors PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 SAFE HARBOR CAUTIONARY STATEMENT This Annual Report on Form 10-K, including exhibits, contains statements that are not based on historical facts and represent forward-looking statements, as this term is defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities, events or developments that UScellular intends, expects, projects, believes, estimates, plans or anticipates will or may occur in the future are forward-looking statements. The words "believes," "anticipates," "estimates," "expects," "plans," "intends," "projects" and similar expressions are intended to identify these forward-looking statements, but are not the exclusive means of identifying them. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be significantly different from any future results, events or developments expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include those set forth below under "Risk Factors" in this Form 10-K. Each of the following risks could have a material adverse effect on UScellular's business, financial condition or results of operations. However, such factors are not necessarily all of the important factors that could cause actual results, performance or achievements to differ materially from those expressed in, or implied by, the forward-looking statements contained in this document. Other unknown or unpredictable factors also could have material adverse effects on future results, performance or achievements. UScellular undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. The reader should carefully consider the following risk factors and other information contained in, o

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