Exhibit 99.1   NEWS RELEASE

As previously announced, TDS will hold a teleconference November 6, 2020, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com. 

 FOR IMMEDIATE RELEASE

TDS reports third quarter 2020 results

UScellular and TDS Telecom report strong subscriber and financial results driving increases to 2020 guidance

CHICAGO (November 5, 2020) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,324 million for the third quarter of 2020, versus $1,321 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $78 million and $0.66, respectively, for the third quarter of 2020 compared to $18 million and $0.15, respectively, in the same period one year ago.

"The TDS Enterprise had a strong quarter," said LeRoy T. Carlson, Jr., TDS President and CEO. "Impressive financial results produced by UScellular and TDS Telecom demonstrate how much our customers value our essential communications and high-quality data services. Both businesses have lifted their expectations for 2020 financial performance. Our associates continue to show exceptional dedication and resilience in keeping our operations and networks performing at top levels for our customers.

"At UScellular, churn remained very low and retail net additions grew through an increase in connected devices. The positive impact of higher ARPU, combined with operational and cost discipline throughout the quarter, helped drive a strong increase in profitability, compared to the same period a year ago. LT Therivel has successfully transitioned into his new role as CEO. During the quarter UScellular successfully completed a 5G millimeter wave test data session showing significant expansion of signal reach and speed. This is important in enabling UScellular to move faster and more cost-efficiently in its 5G evolution and it will also leverage this technology to better serve its customers and help close the digital divide. UScellular has launched a new logo and brand identity with a modern look – a visual signal of how they are working to expand their brand appeal.

"At TDS Telecom, our fiber investments are delivering results. TDS Telecom grew its Wireline video and broadband connections, and combined with demand for higher broadband speeds, drove increases in average residential revenue per connection and total residential revenue. TDS Telecom continues its fiber strategy and has now deployed fiber to 280,000 or 34% of its wireline service addresses. Bolstered by the Continuum acquisition, cable operations produced an exceptional quarter with increased broadband connections generating a 19% growth in revenues and a strong increase in profitability."

1

2020 Estimated Results

TDS’ current estimates of full-year 2020 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of November 5, 2020 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

2020 Estimated Results
UScellular			Previous			Current
(Dollars in millions)
Service revenues			$3,000-$3,100			$3,025-$3,075
Adjusted OIBDA1			$725-$850			$800-$875
Adjusted EBITDA1			$900-$1,025			$975-$1,050
Capital expenditures			$850-$950			Unchanged

TDS Telecom			Previous			Current
(Dollars in millions)
Total operating revenues			$950-$1,000			Unchanged
Adjusted OIBDA1			$280-$310			$300-$320
Adjusted EBITDA1			$290-$320			$305-$325
Capital expenditures			$300-$350			Unchanged

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2020 estimated results, actual results for the nine months ended September 30, 2020, and actual results for the year ended December 31, 2019. In providing 2020 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

			2020 Estimated Results
			UScellular						TDS Telecom
(Dollars in millions)
Net income (GAAP)			N/A						N/A
Add back:
Income tax expense			N/A						N/A
Income before income taxes (GAAP)			$165-$240						$95-$115
Add back:
Interest expense			110						—
Depreciation, amortization and accretion expense			680						210
EBITDA (Non-GAAP)1			$955-$1,030						$305-$325
Add back or deduct:
(Gain) loss on asset disposals, net			20						—
Adjusted EBITDA (Non-GAAP)1			$975-$1,050						$305-$325
Deduct:
Equity in earnings of unconsolidated entities			170						—
Interest and dividend income			5						5
Adjusted OIBDA (Non-GAAP)1			$800-$875						$300-$320

2

			Actual Results
			Nine Months Ended September 30, 2020												Year Ended December 31, 2019
			UScellular						TDS Telecom												UScellular						TDS Telecom
(Dollars in millions)
Net income (GAAP)			$	227					$	81											$	133					$	92
Add back:
Income tax expense			11						13												52						30
Income before income taxes (GAAP)			$	238					$	94											$	185					$	122
Add back:
Interest expense			76						(3)												110						(3)
Depreciation, amortization and accretion expense			516						152												702						200
EBITDA (Non-GAAP)1			$	830					$	243											$	997					$	320
Add back or deduct:
(Gain) loss on asset disposals, net			14						1												19						(7)
(Gain) loss on sale of business and other exit costs, net			—						—												(1)						—
(Gain) loss on investments			(3)						—												—						—
Adjusted EBITDA (Non-GAAP)1			$	841					$	243											$	1,015					$	313
Deduct:
Equity in earnings of unconsolidated entities			137						—												166						—
Interest and dividend income			6						4												17						12
Other, net			—						(1)												—						—
Adjusted OIBDA (Non-GAAP)1			$	698					$	240											$	832					$	300

Numbers may not foot due to rounding.

1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are non-recurring, infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures 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. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, and gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for September 30, 2020, can be found on TDS' website at investors.tdsinc.com.

3

Conference Call Information

TDS will hold a conference call on November 6, 2020 at 9:00 a.m. Central Time.

▪Access the live call on the Events & Presentations page of investors.tdsinc.com or at

https://www.webcaster4.com/Webcast/Page/1145/38510.

▪Access the call by phone at (833) 968-2187, conference ID: 7289911. 

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; cable and wireline broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,300 people as of September 30, 2020.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Contacts

Jane W. McCahon, Senior Vice President - Corporate Relations and Corporate Secretary

jane.mccahon@tdsinc.com

Julie D. Mathews, IRC, Director - Investor Relations

julie.mathews@tdsinc.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the impact, duration and severity of the COVID-19 pandemic; intense competition; the ability to execute TDS’ business strategy; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the state and federal regulatory environment; the ability to attract people of outstanding talent throughout all levels of the organization; conditions in the U.S. telecommunications industry; TDS’ smaller scale relative to larger competitors; changes in demand, consumer preferences, price competition, or churn rates; advances in technology; the value of assets and investments; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; cyber-attacks or other breaches of network or information technology security; changes in facts and circumstances that could require TDS to record adjustments to amounts reflected in the financial statements; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; pending and future litigation. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.    

The impact of the COVID-19 pandemic on TDS' business is uncertain, but depending on its duration and severity it could have a material adverse effect on TDS' business, financial condition or results of operations.

The impact of the global spread of COVID-19 on TDS' future operations is uncertain. Public health emergencies, such as COVID-19, pose the risk that TDS or its associates, agents, partners and suppliers may be unable to conduct business activities for an extended period of time and/or provide the level of service expected. TDS' ability to attract customers, maintain an adequate supply chain and execute on its business strategies and initiatives could be negatively impacted by this outbreak. Additionally, COVID-19 has caused and could continue to cause increased unemployment, economic downturn and credit market deterioration, all of which could negatively impact TDS. The extent of the impact of COVID-19 on TDS' business, financial condition and results of operations will depend on future circumstances, including the severity of the disease, the duration of the outbreak, actions taken by governmental authorities and other possible direct and indirect consequences, all of which are uncertain and cannot be predicted.

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com 

UScellular: www.uscellular.com 

TDS Telecom: www.tdstelecom.com 

OneNeck IT Solutions: www.oneneck.com

4

United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended			9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
Retail Connections
Postpaid
Total at end of period			4,401,000						4,372,000						4,359,000						4,383,000						4,395,000
Gross additions			168,000						129,000						132,000						170,000						163,000
Feature phones			4,000						3,000						2,000						2,000						3,000
Smartphones			98,000						82,000						88,000						128,000						121,000
Connected devices			66,000						44,000						42,000						40,000						39,000
Net additions (losses)			28,000						12,000						(26,000)						(12,000)						(19,000)
Feature phones			(8,000)						(8,000)						(10,000)						(11,000)						(11,000)
Smartphones			8,000						11,000						(10,000)						13,000						9,000
Connected devices			28,000						9,000						(6,000)						(14,000)						(17,000)
ARPU1			$	47.10					$	46.24					$	47.23					$	46.57					$	46.16
ARPA2			$	123.27					$	120.70					$	122.92					$	120.99					$	119.87
Churn rate3			1.06		%				0.89		%				1.21		%				1.38		%				1.38		%
Handsets			0.88		%				0.71		%				0.95		%				1.11		%				1.09		%
Connected devices			2.35		%				2.24		%				3.11		%				3.44		%				3.44		%
Prepaid
Total at end of period			506,000						496,000						494,000						506,000						510,000
Gross additions			65,000						62,000						57,000						63,000						70,000
Net additions (losses)			11,000						2,000						(12,000)						(3,000)						9,000
ARPU1			$	35.45					$	34.89					$	34.07					$	34.11					$	34.35
Churn rate3			3.59		%				4.05		%				4.67		%				4.40		%				4.03		%
Total connections at end of period4			4,962,000						4,919,000						4,903,000						4,941,000						4,957,000
Market penetration at end of period
Consolidated operating population			31,314,000						31,292,000						31,292,000						30,740,000						31,310,000
Consolidated operating penetration5			16		%				16		%				16		%				16		%				16		%
Capital expenditures (millions)			$	216					$	168					$	236					$	243					$	170
Total cell sites in service			6,758						6,673						6,629						6,578						6,554
Owned towers			4,246						4,208						4,184						4,166						4,123

1Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:

•Postpaid ARPU consists of total postpaid service revenues and postpaid connections.

•Prepaid ARPU consists of total prepaid service revenues and prepaid connections.

2Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.

3Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.

4Includes reseller and other connections.

5Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total population of consolidated operating markets as estimated by Nielsen.

5

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended			9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
TDS Telecom
Wireline
Residential connections
Voice1			260,000						261,800						259,100						262,100						266,100
Broadband2			260,700						255,100						242,700						241,300						242,200
Video3			62,300						61,400						59,000						58,500						57,300
Wireline residential connections			583,000						578,300						560,700						561,900						565,600
Total residential revenue per connection4			$	51.45					$	49.73					$	50.12					$	49.11					$	49.02
Commercial connections
Voice1			109,400						112,400						114,400						117,800						121,200
Broadband2			20,800						20,700						20,500						20,400						20,600
managedIP5			114,900						115,500						118,300						121,200						124,500
Video3			200						200						100						100						400
Wireline commercial connections			245,400						248,700						253,400						259,600						266,600
Total Wireline connections			828,400						827,000						814,200						821,500						832,300
Cable
Cable residential and commercial connections
Broadband6			206,200						203,700						196,800						193,500						174,900
Video7			101,800						103,400						105,100						106,600						98,000
Voice8			67,700						69,000						68,900						69,500						63,900
managedIP5			1,800						1,800						1,400						1,300						1,200
Total Cable connections			377,400						378,000						372,300						370,900						338,000

Numbers may not foot due to rounding.

1The individual circuits connecting a customer to Wireline’s central office facilities that provide voice services.

2The number of Wireline customers provided high-capacity data circuits via various technologies, including DSL and dedicated internet circuit technologies.

3The number of Wireline customers provided video services.

4Total residential revenue per connection is calculated by dividing total Wireline residential revenue by the average number of Wireline residential connections and by the number of months in the period.

5The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.

6Billable number of lines into a building for high-speed data services.

7Generally, a home or business receiving video programming counts as one video connection. In counting bulk residential or commercial connections, such as an apartment building or hotel, connections are counted based on the number of units/rooms within the building receiving service.

8Billable number of lines into a building for voice services.

TDS Telecom
Capital Expenditures (Unaudited)
Quarter Ended			9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
(Dollars in millions)
Wireline			$	74					$	58					$	39					$	98					$	61
Cable			18						17						15						26						20
Total TDS Telecom			$	92					$	75					$	54					$	124					$	81

6

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
			Three Months Ended September 30,																		Nine Months Ended September 30,
			2020						2019						2020 vs. 2019						2020						2019						2020 vs. 2019
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular			$	1,027					$	1,031					–						$	2,964					$	2,970					–
TDS Telecom			247						231						7		%				728						695						5		%
All Other1			50						59						(16)		%				157						175						(10)		%
			1,324						1,321						–						3,849						3,840						–
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion			795						823						(3)		%				2,266						2,319						(2)		%
Depreciation, amortization and accretion			161						181						(11)		%				516						524						(2)		%
(Gain) loss on asset disposals, net			6						5						15		%				14						13						10		%
(Gain) loss on sale of business and other exit costs, net			—						—						N/M						—						(1)						N/M
(Gain) loss on license sales and exchanges, net			—						2						N/M						—						—						N/M
			962						1,011						(5)		%				2,796						2,855						(2)		%
TDS Telecom
Expenses excluding depreciation, amortization and accretion			169						162						4		%				488						467						4		%
Depreciation, amortization and accretion			49						50						–						152						150						2		%
(Gain) loss on asset disposals, net			—						—						65		%				1						(7)						N/M
			219						212						3		%				641						609						5		%
All Other1
Expenses excluding depreciation and amortization			50						62						(19)		%				157						182						(13)		%
Depreciation and amortization			7						6						(26)		%				17						23						(24)		%
(Gain) loss on asset disposals, net			—						1						(96)		%				—						(1)						71		%
			56						69						(20)		%				174						205						(14)		%
Total operating expenses			1,237						1,292						(4)		%				3,611						3,669						(2)		%
Operating income (loss)
UScellular			65						20						N/M						168						115						46		%
TDS Telecom			28						20						44		%				87						86						2		%
All Other1			(6)						(11)						45		%				(17)						(30)						39		%
			87						29						N/M						238						171						39		%
Investment and other income (expense)
Equity in earnings of unconsolidated entities			48						44						10		%				138						129						7		%
Interest and dividend income			4						7						(49)		%				12						24						(52)		%
Gain (loss) on investments			3						—						N/M						3						—						N/M
Interest expense			(43)						(42)						(1)		%				(119)						(128)						8		%
Other, net			—						—						(60)		%				(1)						—						(58)		%
Total investment and other income			12						9						38		%				33						25						35		%
Income before income taxes			99						38						N/M						271						196						38		%
Income tax expense			6						15						(61)		%				17						64						(73)		%
Net income			93						23						N/M						254						132						92		%
Less: Net income attributable to noncontrolling interests, net of tax			15						5						N/M						42						22						87		%
Net income attributable to TDS shareholders			$	78					$	18					N/M						$	212					$	110					93		%
Basic weighted average shares outstanding			114						115						–						114						114						–
Basic earnings per share attributable to TDS shareholders			$	0.68					$	0.15					N/M						$	1.85					$	0.96					93		%
Diluted weighted average shares outstanding			115						116						–						115						116						–
Diluted earnings per share attributable to TDS shareholders			$	0.66					$	0.15					N/M						$	1.81					$	0.93					94		%

N/M - Percentage change not meaningful.

Numbers may not foot due to rounding.

1Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.

7

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
			Nine Months Ended September 30,
			2020						2019
(Dollars in millions)
Cash flows from operating activities
Net income			$	254					$	132
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion			685						697
Bad debts expense			55						80
Stock-based compensation expense			39						47
Deferred income taxes, net			217						23
Equity in earnings of unconsolidated entities			(138)						(129)
Distributions from unconsolidated entities			118						100
(Gain) loss on asset disposals, net			15						5
(Gain) loss on sale of business and other exit costs, net			—						(1)
(Gain) loss on investments			(3)						—
Other operating activities			1						4
Changes in assets and liabilities from operations
Accounts receivable			26						(42)
Equipment installment plans receivable			13						(42)
Inventory			2						3
Accounts payable			95						(4)
Customer deposits and deferred revenues			(21)						(2)
Accrued taxes			(156)						37
Accrued interest			14						9
Other assets and liabilities			(50)						(43)
Net cash provided by operating activities			1,166						874
Cash flows from investing activities
Cash paid for additions to property, plant and equipment			(914)						(631)
Cash paid for licenses			(169)						(257)
Cash received from investments			1						29
Cash paid for investments			(1)						(11)
Cash received from divestitures and exchanges			1						32
Other investing activities			4						1
Net cash used in investing activities			(1,078)						(837)
Cash flows from financing activities
Issuance of long-term debt			675						—
Repayment of long-term debt			(8)						(16)
TDS Common Shares reissued for benefit plans, net of tax payments			(3)						(6)
UScellular Common Shares reissued for benefit plans, net of tax payments			(11)						(8)
Repurchase of TDS Common Shares			(14)						—
Repurchase of UScellular Common Shares			(23)						(21)
Dividends paid to TDS shareholders			(58)						(57)
Payment of debt issuance costs			(23)						(1)
Distributions to noncontrolling interests			(2)						(3)
Other financing activities			1						9
Net cash provided by (used in) financing activities			534						(103)
Net increase (decrease) in cash, cash equivalents and restricted cash			622						(66)
Cash, cash equivalents and restricted cash
Beginning of period			474						927
End of period			$	1,096					$	861

8

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
			September 30, 2020						December 31, 2019
(Dollars in millions)
Current assets
Cash and cash equivalents			$	1,076					$	465
Accounts receivable, net			1,056						1,124
Inventory, net			164						169
Prepaid expenses			109						98
Income taxes receivable			226						36
Other current assets			39						29
Total current assets			2,670						1,921
Assets held for sale			19						—
Licenses			2,637						2,480
Goodwill			547						547
Other intangible assets, net			219						239
Investments in unconsolidated entities			508						488
Property, plant and equipment, net			3,727						3,527
Operating lease right-of-use assets			988						972
Other assets and deferred charges			580						607
Total assets			$	11,895					$	10,781

9

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
			September 30, 2020						December 31, 2019
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt			$	3					$	10
Accounts payable			399						374
Customer deposits and deferred revenues			168						189
Accrued interest			24						11
Accrued taxes			63						41
Accrued compensation			107						121
Short-term operating lease liabilities			125						116
Other current liabilities			76						100
Total current liabilities			965						962
Deferred liabilities and credits
Deferred income tax liability, net			893						676
Long-term operating lease liabilities			938						931
Other deferred liabilities and credits			530						481
Long-term debt, net			2,970						2,316
Noncontrolling interests with redemption features			10						11
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share			1						1
Capital in excess of par value			2,479						2,468
Treasury shares, at cost			(478)						(479)
Accumulated other comprehensive loss			(7)						(9)
Retained earnings			2,809						2,672
Total TDS shareholders' equity			4,804						4,653
Noncontrolling interests			785						751
Total equity			5,589						5,404
Total liabilities and equity			$	11,895					$	10,781

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Balance Sheet Highlights
(Unaudited)
			September 30, 2020
									TDS						TDS Corporate						Intercompany						TDS
			UScellular						Telecom						& Other						Eliminations						Consolidated
(Dollars in millions)
Cash and cash equivalents			$	931					$	573					$	147					$	(575)					$	1,076
Licenses, goodwill and other intangible assets			$	2,628					$	766					$	9					$	—					$	3,403
Investment in unconsolidated entities			467						4						48						(11)						508
			$	3,095					$	770					$	57					$	(11)					$	3,911
Property, plant and equipment, net			$	2,322					$	1,303					$	102					$	—					$	3,727
Long-term debt, net:
Current portion			$	2					$	—					$	1					$	—					$	3
Non-current portion			2,108						4						858						—						2,970
			$	2,110					$	4					$	859					$	—					$	2,973

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TDS Telecom Highlights
(Unaudited)
			Three Months Ended September 30,																		Nine Months Ended September 30,
			2020						2019						2020 vs. 2019						2020						2019						2020 vs. 2019
(Dollars in millions)
Wireline
Operating revenues
Residential			$	90					$	83					8		%				$	260					$	245					6		%
Commercial			38						41						(8)		%				115						127						(9)		%
Wholesale			45						45						1		%				136						139						(2)		%
Total service revenues			173						169						2		%				511						512						–
Equipment and product sales			—						—						4		%				1						1						(30)		%
			173						169						2		%				512						512						–
Operating expenses
Cost of services			69						68						2		%				197						195						1		%
Cost of equipment and products			—						—						(25)		%				1						1						(30)		%
Selling, general and administrative expenses			51						52						(3)		%				148						148						(1)		%
Expenses excluding depreciation, amortization and accretion			120						120						–						345						344						–
Depreciation, amortization and accretion			30						33						(8)		%				94						99						(5)		%
(Gain) loss on asset disposals, net			—						—						(70)		%				—						(8)						N/M
			150						153						(2)		%				439						435						1		%
Operating income			$	23					$	16					42		%				$	73					$	78					(6)		%
Cable
Operating revenues
Residential			$	62					$	52					21		%				$	182					$	152					20		%
Commercial			12						10						13		%				34						32						9		%
			74						62						19		%				216						184						18		%
Operating expenses
Cost of services			31						27						15		%				91						79						15		%
Selling, general and administrative expenses			18						15						23		%				52						44						18		%
Expenses excluding depreciation, amortization and accretion			49						42						18		%				143						124						16		%
Depreciation, amortization and accretion			20						17						15		%				59						51						15		%
(Gain) loss on asset disposals, net			—						—						N/M						1						1						(14)		%
			69						59						17		%				202						175						15		%
Operating income (loss)			$	5					$	3					55		%				$	14					$	8					76		%
Total TDS Telecom operating income			$	28					$	20					44		%				$	87					$	86					2		%

N/M - Percentage change not meaningful.

Numbers may not foot due to rounding.

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Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

(Unaudited)

Free Cash Flow

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
(Dollars in millions)
Cash flows from operating activities (GAAP)			$	359					$	282					$	1,166					$	874
Less: Cash paid for additions to property, plant and equipment			304						238						914						631
Free cash flow (Non-GAAP)1			$	55					$	44					$	252					$	243

1Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment.

13