Financial data for TDS’ reportable segments for the three month periods ended, or as of March 31, 2018 and 2017, is as follows. See Note 1 — Basis of Presentation for additional information.

					TDS Telecom
Three Months Ended or as of March 31, 2018¹			U.S. Cellular		Wireline		Cable		TDS Telecom Total2		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service		$	724	$	175	$	55	$	230	$	24	$	978
	Equipment and product sales			218		–		–		–		29		247
		Total operating revenues		942		175		55		231		52		1,225
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			179		65		26		90		19		288
Cost of equipment and products				219		–		–		–		27		246
Selling, general and administrative				326		47		13		60		9		395
Depreciation, amortization and accretion				159		37		17		54		8		221
(Gain) loss on asset disposals, net				1		–		–		–		1		2
(Gain) loss on license sales and exchanges, net				(7)		–		–		–		–		(7)
Operating income (loss)				65		26		(1)		25		(10)		80
Equity in earnings of unconsolidated entities				38		–		–		–		–		38
Interest and dividend income				4		1		–		1		–		5
Interest expense				(29)		–		–		–		(14)		(43)
Other, net				(1)		1		–		1		1		1
Income (loss) before income taxes				77		28		(1)		27		(23)		81
Income tax expense (benefit)3				22						6		(4)		24
Net income (loss)				55						21		(19)		57
Add back:
Depreciation, amortization and accretion				159		37		17		54		8		221
(Gain) loss on asset disposals, net				1		–		–		–		1		2
(Gain) loss on license sales and exchanges, net				(7)		–		–		–		–		(7)
Interest expense				29		–		–		–		14		43
Income tax expense (benefit)3				22						6		(4)		24
Adjusted EBITDA4			$	259	$	65	$	16	$	81	$	–	$	340

Investments in unconsolidated entities			$	450	$	4	$	–	$	4	$	34	$	488
Total assets			$	7,048	$	1,264	$	644	$	1,901	$	532	$	9,481
Capital expenditures			$	70	$	29	$	11	$	40	$	5	$	115

					TDS Telecom
Three Months Ended or as of March 31, 2017			U.S. Cellular		Wireline		Cable		TDS Telecom Total2		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service		$	746	$	179	$	49	$	228	$	23	$	997
	Equipment and product sales			190		–		–		–		51		241
		Total operating revenues		936		179		49		228		74		1,238
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			175		63		24		87		20		282
Cost of equipment and products				228		1		–		1		41		270
Selling, general and administrative5				339		48		13		61		7		407
Depreciation, amortization and accretion				153		39		10		49		9		211
(Gain) loss on asset disposals, net				4		–		–		1		(1)		4
(Gain) loss on license sales and exchanges, net				(17)		–		–		–		–		(17)
Operating income (loss)5				54		28		2		30		(3)		81
Equity in earnings of unconsolidated entities				33		–		–		–		(1)		32
Interest and dividend income				3		1		–		1		–		4
Interest expense				(28)		–		–		–		(14)		(42)
Other, net5				(1)		1		–		1		2		2
Income (loss) before income taxes				61		30		2		32		(16)		77
Income tax expense (benefit)3				33						13		(12)		34
Net income (loss)				28						19		(4)		43
Add back:
Depreciation, amortization and accretion				153		39		10		49		9		211
(Gain) loss on asset disposals, net				4		–		–		1		(1)		4
(Gain) loss on license sales and exchanges, net				(17)		–		–		–		–		(17)
Interest expense				28		–		–		–		14		42
Income tax expense (benefit)3				33						13		(12)		34
Adjusted EBITDA4			$	229	$	69	$	13	$	82	$	6	$	317

Investments in unconsolidated entities			$	434	$	4	$	–	$	4	$	34	$	472
Total assets			$	7,024	$	1,204	$	609	$	1,815	$	510	$	9,349
Capital expenditures			$	61	$	17	$	9	$	27	$	8	$	96

Numbers may not foot due to rounding.

1		As of January 1, 2018, TDS adopted ASU 2014-09 using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASU 2014-09, but 2017 amounts remain as previously reported, except as specifically stated. See Note 2 — Revenue Recognition for additional information.

2		TDS Telecom Total includes eliminations between the Wireline and Cable segments.

3		Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. TDS calculates income tax expense for “TDS Telecom Total”.

4		Adjusted earnings before interest, taxes, depreciation, amortization and accretion (Adjusted EBITDA) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. TDS believes Adjusted EBITDA is a useful measure of TDS’ 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 TDS' 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.

5		ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard.