Financial data for TDS’ reportable segments for the three month periods ended, or as of March 31, 2019 and 2018, is as follows. See Note 1 — Basis of Presentation for additional information.



				TDS Telecom
Three Months Ended or as of March 31, 2019	U.S. Cellular			Wireline			Cable		TDS Telecom Total¹			Corporate, Eliminations and Other			Total
(Dollars in millions)
Operating revenues
Service	$	741		$	170		$	60	$	230		$	24		$	995
Equipment and product sales	225			—			—		—			37			262
Total operating revenues	966			171			60		230			61			1,257
Cost of services (excluding Depreciation, amortization and accretion reported below)	176			63			26		88			20			284
Cost of equipment and products	233			—			—		—			31			264
Selling, general and administrative	326			47			14		61			10			397
Depreciation, amortization and accretion	169			34			17		50			8			227
(Gain) loss on asset disposals, net	2			(7		)	—		(7		)	—			(5		)
(Gain) loss sale of business and other exit costs, net	(2		)	—			—		—			—			(2		)
(Gain) loss on license sales and exchanges, net	(2		)	—			—		—			—			(2		)
Operating income (loss)	64			34			2		37			(7		)	94
Equity in earnings of unconsolidated entities	44			—			—		—			—			44
Interest and dividend income	6			3			—		3			—			9
Interest expense	(29		)	1			—		—			(14		)	(43		)
Other, net	—			—			—		—			—			—
Income (loss) before income taxes	85			38			3		40			(21		)	104
Income tax expense (benefit)²	27								10			(3		)	34
Net income (loss)	58								31			(19		)	70
Add back:
Depreciation, amortization and accretion	169			34			17		50			8			227
(Gain) loss on asset disposals, net	2			(7		)	—		(7		)	—			(5		)
(Gain) loss sale of business and other exit costs, net	(2		)	—			—		—			—			(2		)
(Gain) loss on license sales and exchanges, net	(2		)	—			—		—			—			(2		)
Interest expense	29			(1		)	—		—			14			43
Income tax expense (benefit)²	27								10			(3		)	34
Adjusted EBITDA³	$	281		$	63		$	20	$	83		$	1		$	365

Investments in unconsolidated entities	$	468		$	4		$	—	$	4		$	35		$	507
Total assets	$	8,229		$	1,353		$	641	$	1,986		$	572		$	10,787
Capital expenditures	$	102		$	29		$	13	$	42		$	3		$	147

Numbers may not foot due to rounding.



				TDS Telecom
Three Months Ended or as of March 31, 2018	U.S. Cellular			Wireline		Cable			TDS Telecom Total¹		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)²	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)²	22								6		(4		)	24
Adjusted EBITDA³	$	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

Numbers may not foot due to rounding.


¹	TDS Telecom Total includes eliminations between the Wireline and Cable segments.


²	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”.

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.