Exhibit 99.1   NEWS RELEASE

As previously announced, TDS will hold a teleconference November 4, 2021, at 4:00 p.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com. 

 FOR IMMEDIATE RELEASE

TDS reports third quarter 2021 results

UScellular and TDS Telecom executing on strategic priorities;

TDS Telecom has deployed fiber to 40% of its wireline service addresses

CHICAGO (November 4, 2021) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,328 million for the third quarter of 2021, versus $1,324 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share were $28 million and $0.24, respectively, for the third quarter of 2021 compared to $78 million and $0.66, respectively, in the same period one year ago.

"The TDS Enterprise continued to execute on its strategic priorities," said LeRoy T. Carlson, Jr., TDS President and CEO. “UScellular is continuing to make improvements in its high-performing network and TDS Telecom is making progress in its new fiber expansion markets.

"At UScellular, the positive impact of postpaid ARPU contributed to growth in retail service revenues. In addition, prepaid results indicate an improving trend as we progress through the year. Our business and government and our tower operations are also gaining momentum towards the growth we believe is achievable in their respective areas. UScellular’s 5G and network modernization programs are on track, and we are optimistic on the use of millimeter wave spectrum for fixed wireless access and its potential to serve rural customers. Test trials to validate customer experience and network performance have continued and will provide important insights as we look to bring this service to market.

"TDS Telecom achieved excellent growth in broadband connections, which helped drive higher operating revenues for the quarter. TDS Telecom continues to upsize its fiber program and has deployed fiber to 40% of its wireline service addresses. Now capable of delivering 2Gig internet speeds in select markets, TDS Telecom will offer 2Gig speeds in all of its fiber expansion markets going forward.”

1

2021 Estimated Results

TDS’ current estimates of full-year 2021 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of November 4, 2021 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.

2021 Estimated Results
UScellular			Previous			Current
(Dollars in millions)
Service revenues			$3,050-$3,150			$3,075-$3,125
Adjusted OIBDA1			$850-$950			Unchanged
Adjusted EBITDA1			$1,025-$1,125			Unchanged
Capital expenditures			$775-$875			$700-$800

TDS Telecom			Previous			Current
(Dollars in millions)
Total operating revenues			$975-$1,025			$990-$1,020
Adjusted OIBDA1			$290-$320			$295-$315
Adjusted EBITDA1			$290-$320			$295-$315
Capital expenditures			$425-$475			$400-$450

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2021 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.

			2021 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)			$155-$255						$95-$115
Add back:
Interest expense			180						—
Depreciation, amortization and accretion expense			675						200
EBITDA (Non-GAAP)1			$1,010-$1,110						$295-$315
Add back or deduct:
(Gain) loss on asset disposals, net			15						—
Adjusted EBITDA (Non-GAAP)1			$1,025-$1,125						$295-$315
Deduct:
Equity in earnings of unconsolidated entities			170						—
Interest and dividend income			5						—
Adjusted OIBDA (Non-GAAP)1			$850-$950						$295-$315

2

			Actual Results
			Nine Months Ended September 30, 2021												Year Ended December 31, 2020
			UScellular						TDS Telecom												UScellular						TDS Telecom
(Dollars in millions)
Net income (GAAP)			$	132					$	68											$	233					$	100
Add back:
Income tax expense			31						22												17						18
Income before income taxes (GAAP)			$	163					$	90											$	250					$	117
Add back:
Interest expense			144						(3)												112						(4)
Depreciation, amortization and accretion expense			510						147												683						203
EBITDA (Non-GAAP)1			$	817					$	233											$	1,045					$	316
Add back or deduct:
(Gain) loss on asset disposals, net			15						2												25						1
(Gain) loss on sale of business and other exit costs, net			(1)						—												—						—
(Gain) loss on license sales and exchanges, net			—						—												(5)						—
(Gain) loss on investments			—						—												(2)						—
Adjusted EBITDA (Non-GAAP)1			$	831					$	235											$	1,063					$	317
Deduct:
Equity in earnings of unconsolidated entities			137						—												179						—
Interest and dividend income			5						1												8						5
Other, net			—						(1)												—						(1)
Adjusted OIBDA (Non-GAAP)1			$	689					$	235											$	876					$	314

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, 2021, can be found on TDS' website at investors.tdsinc.com.

3

Stock Repurchase

During the third quarter of 2021, TDS repurchased 77,489 Common Shares for $2 million and UScellular repurchased 626,410 Common Shares for $20 million.

Conference Call Information

TDS will hold a conference call on November 4, 2021 at 4:00 p.m. Central Time.

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

https://event.on24.com/wcc/r/3192472/D1EB8251CA63A8AE47DD208E6469C968

▪Access the call by phone at (833) 968-2187, conference ID: 6753568. 

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; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed approximately 8,900 associates as of September 30, 2021.

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: intense competition; 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 ability to attract people of outstanding talent throughout all levels of the organization; TDS’ smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; 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; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; cyber-attacks or other breaches of network or information technology security; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. 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.    

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			9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020
Retail Connections
Postpaid
Total at end of period			4,391,000						4,399,000						4,406,000						4,412,000						4,401,000
Gross additions			145,000						141,000						143,000						171,000						168,000
Feature phones			2,000						3,000						3,000						2,000						4,000
Smartphones			103,000						98,000						101,000						117,000						98,000
Connected devices			40,000						40,000						39,000						52,000						66,000
Net additions (losses)			(8,000)						(6,000)						(6,000)						11,000						28,000
Feature phones			(7,000)						(7,000)						(9,000)						(9,000)						(8,000)
Smartphones			2,000						6,000						6,000						12,000						8,000
Connected devices			(3,000)						(5,000)						(3,000)						8,000						28,000
ARPU1,2			$	48.12					$	47.74					$	47.65					$	47.51					$	47.10
ARPA1,3			$	125.99					$	125.25					$	125.25					$	124.87					$	123.27
Churn rate4			1.15		%				1.11		%				1.12		%				1.21		%				1.06		%
Handsets			0.95		%				0.88		%				0.92		%				1.01		%				0.88		%
Connected devices			2.59		%				2.69		%				2.53		%				2.64		%				2.35		%
Prepaid
Total at end of period			518,000						507,000						496,000						499,000						506,000
Gross additions			74,000						65,000						62,000						56,000						65,000
Net additions (losses)			11,000						10,000						(3,000)						(8,000)						11,000
ARPU2			$	35.05					$	35.64					$	35.25					$	35.15					$	35.45
Churn rate4			4.09		%				3.66		%				4.37		%				4.24		%				3.59		%
Total connections at end of period5			4,972,000						4,967,000						4,961,000						4,968,000						4,962,000
Market penetration at end of period
Consolidated operating population			31,865,000						31,493,000						31,493,000						31,314,000						31,314,000
Consolidated operating penetration6			16		%				16		%				16		%				16		%				16		%
Capital expenditures (millions)			$	185					$	148					$	125					$	320					$	216
Total cell sites in service			6,857						6,819						6,802						6,797						6,758
Owned towers			4,274						4,278						4,270						4,271						4,246

1Q3 2021 Postpaid ARPU and ARPA amounts exclude $9 million of postpaid revenue related to a third quarter out-of-period error.

2Average 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.

3Average 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.

4Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.

5Includes reseller and other connections.

6Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.

5

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended			9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020
Residential connections
Broadband1
Wireline, Incumbent			252,100						249,200						243,700						242,500						243,400
Wireline, Expansion			32,600						28,300						24,100						20,400						17,300
Cable			202,700						201,200						199,500						196,400						193,300
Total Broadband			487,400						478,700						467,300						459,300						454,000
Video2
Wireline			65,900						64,800						63,000						63,000						62,300
Cable			77,200						78,400						79,600						81,400						82,300
Total Video			143,100						143,200						142,700						144,400						144,500
Voice3
Wireline			252,100						254,200						255,000						256,900						260,000
Cable			54,200						54,000						53,700						53,900						54,400
Total Voice			306,300						308,100						308,700						310,800						314,400
Total Residential connections			936,800						930,100						918,700						914,400						913,000
Commercial connections
Broadband1			35,400						34,900						34,400						34,000						33,700
Video2			18,200						19,100						19,400						19,700						19,700
Voice3			111,500						114,300						116,500						119,700						122,700
ManagedIP4			103,900						106,200						108,500						113,300						116,700
Total Commercial connections			269,000						274,400						278,800						286,700						292,900
Total connections			1,205,700						1,204,500						1,197,400						1,201,100						1,205,900
Residential revenue per connection5			$	57.75					$	57.66					$	56.97					$	55.66					$	55.66
Capital expenditures (millions)			$	91					$	99					$	70					$	147					$	92

Numbers may not foot due to rounding.

1The individual customers provided high-speed internet access through various transmission technologies, including fiber, DSL, dedicated internet circuit technologies or cable modem service.

2The individual customers provided video services.

3The individual circuits connecting a customer to TDS' central office facilities that provide voice services or the billable number of lines into a building for voice services.

4The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.

5Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

6

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
			Three Months Ended September 30,																		Nine Months Ended September 30,
			2021						2020						2021 vs. 2020						2021						2020						2021 vs. 2020
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular1			$	1,016					$	1,027					(1)		%				$	3,053					$	2,964					3		%
TDS Telecom			252						247						2		%				752						728						3		%
All Other2			60						50						22		%				152						157						(3)		%
			1,328						1,324						–						3,957						3,849						3		%
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion			803						795						1		%				2,364						2,266						4		%
Depreciation, amortization and accretion			160						161						–						510						516						(1)		%
(Gain) loss on asset disposals, net			8						6						29		%				15						14						7		%
(Gain) loss on sale of business and other exit costs, net			—						—						N/M						(1)						—						N/M
			971						962						1		%				2,888						2,796						3		%
TDS Telecom
Expenses excluding depreciation, amortization and accretion			175						169						3		%				517						488						6		%
Depreciation, amortization and accretion			49						49						(1)		%				147						152						(4)		%
(Gain) loss on asset disposals, net			1						—						50		%				2						1						N/M
			224						219						2		%				665						641						4		%
All Other2
Expenses excluding depreciation and amortization			60						50						19		%				153						157						(3)		%
Depreciation and amortization			4						7						(20)		%				13						17						(18)		%
(Gain) loss on asset disposals, net			(1)						—						N/M						—						—						(90)		%
			64						56						15		%				167						174						(4)		%
Total operating expenses			1,259						1,237						2		%				3,720						3,611						3		%
Operating income (loss)
UScellular			45						65						(31)		%				165						168						(2)		%
TDS Telecom			27						28						(3)		%				87						87						(1)		%
All Other2			(3)						(6)						40		%				(15)						(17)						14		%
			69						87						(21)		%				237						238						–
Investment and other income (expense)
Equity in earnings of unconsolidated entities			48						48						–						138						138						–
Interest and dividend income			3						4						(30)		%				9						12						(24)		%
Gain (loss) on investments			—						3						N/M						—						3						N/M
Interest expense			(54)						(43)						(24)		%				(193)						(119)						(63)		%
Other, net			—						—						19		%				(1)						(1)						13		%
Total investment and other income (expense)			(3)						12						N/M						(47)						33						N/M
Income before income taxes			66						99						(33)		%				190						271						(30)		%
Income tax expense			19						6						N/M						38						17						N/M
Net income			47						93						(50)		%				152						254						(40)		%
Less: Net income attributable to noncontrolling interests, net of tax			7						15						(55)		%				26						42						(37)		%
Net income attributable to TDS shareholders			40						78						(49)		%				126						212						(41)		%
TDS Preferred Share dividends			12						—						N/M						21						—						N/M
Net income attributable to TDS common shareholders			$	28					$	78					(64)		%				$	105					$	212					(51)		%
Basic weighted average shares outstanding			115						114						–						115						114						–
Basic earnings per share attributable to TDS common shareholders			$	0.24					$	0.68					(64)		%				$	0.91					$	1.85					(51)		%
Diluted weighted average shares outstanding			116						115						1		%				116						115						–
Diluted earnings per share attributable to TDS common shareholders			$	0.24					$	0.66					(64)		%				$	0.89					$	1.81					(51)		%

N/M - Percentage change not meaningful.

Numbers may not foot due to rounding.

1During the three months ended September 30, 2021, UScellular recorded a $9 million out-of-period error, which increased Service revenue by $9 million for the three and nine months ended September 30, 2021.

2Consists 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,
			2021						2020
(Dollars in millions)
Cash flows from operating activities
Net income			$	152					$	254
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion			670						685
Bad debts expense			36						55
Stock-based compensation expense			35						39
Deferred income taxes, net			55						217
Equity in earnings of unconsolidated entities			(138)						(138)
Distributions from unconsolidated entities			107						118
(Gain) loss on asset disposals, net			17						15
(Gain) loss on sale of business and other exit costs, net			(1)						—
(Gain) loss on investments			—						(3)
Other operating activities			51						1
Changes in assets and liabilities from operations
Accounts receivable			26						26
Equipment installment plans receivable			(44)						13
Inventory			12						2
Accounts payable			(56)						95
Customer deposits and deferred revenues			13						(21)
Accrued taxes			(43)						(156)
Accrued interest			4						14
Other assets and liabilities			(33)						(50)
Net cash provided by operating activities			863						1,166
Cash flows from investing activities
Cash paid for additions to property, plant and equipment			(726)						(914)
Cash paid for intangible assets			(1,268)						(169)
Cash received from investments			3						1
Cash paid for investments			—						(1)
Cash received from divestitures and exchanges			2						1
Advance payments for license acquisitions			(20)						—
Other investing activities			3						4
Net cash used in investing activities			(2,006)						(1,078)
Cash flows from financing activities
Issuance of long-term debt			1,418						675
Repayment of long-term debt			(1,884)						(8)
Issuance of TDS Preferred Shares			1,110						—
TDS Common Shares reissued for benefit plans, net of tax payments			(5)						(3)
UScellular Common Shares reissued for benefit plans, net of tax payments			(16)						(11)
Repurchase of TDS Common Shares			(4)						(14)
Repurchase of UScellular Common Shares			(21)						(23)
Dividends paid to TDS shareholders			(81)						(58)
Payment of debt and equity issuance costs			(59)						(23)
Distributions to noncontrolling interests			(2)						(2)
Other financing activities			(4)						1
Net cash provided by financing activities			452						534
Net increase (decrease) in cash, cash equivalents and restricted cash			(691)						622
Cash, cash equivalents and restricted cash
Beginning of period			1,452						474
End of period			$	761					$	1,096

8

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
			September 30, 2021						December 31, 2020
(Dollars in millions)
Current assets
Cash and cash equivalents			$	725					$	1,429
Short-term investments			—						3
Accounts receivable, net			1,083						1,112
Inventory, net			142						154
Prepaid expenses			104						105
Income taxes receivable			187						187
Other current assets			56						36
Total current assets			2,297						3,026
Assets held for sale			3						2
Licenses			4,111						2,638
Goodwill			547						547
Other intangible assets, net			202						213
Investments in unconsolidated entities			509						477
Property, plant and equipment, net			4,108						3,972
Operating lease right-of-use assets			1,021						998
Other assets and deferred charges			648						652
Total assets			$	13,446					$	12,525

9

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
			September 30, 2021						December 31, 2020
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt			$	194					$	5
Accounts payable			466						508
Customer deposits and deferred revenues			207						193
Accrued interest			20						16
Accrued taxes			46						69
Accrued compensation			112						132
Short-term operating lease liabilities			139						129
Other current liabilities			104						101
Total current liabilities			1,288						1,153
Liabilities held for sale			—						1
Deferred liabilities and credits
Deferred income tax liability, net			919						863
Long-term operating lease liabilities			947						940
Other deferred liabilities and credits			750						541
Long-term debt, net			2,804						3,424
Noncontrolling interests with redemption features			10						10
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share			1						1
Capital in excess of par value			2,478						2,482
Preferred Shares, par value $0.01 per share			1,074						—
Treasury shares, at cost			(459)						(477)
Accumulated other comprehensive loss			(2)						(4)
Retained earnings			2,819						2,802
Total TDS shareholders' equity			5,911						4,804
Noncontrolling interests			817						789
Total equity			6,728						5,593
Total liabilities and equity			$	13,446					$	12,525

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Balance Sheet Highlights
(Unaudited)
			September 30, 2021
									TDS						TDS Corporate						Intercompany						TDS
			UScellular						Telecom						& Other						Eliminations						Consolidated
(Dollars in millions)
Cash and cash equivalents			$	231					$	153					$	500					$	(159)					$	725
Licenses, goodwill and other intangible assets			$	4,102					$	751					$	7					$	—					$	4,860
Investment in unconsolidated entities			466						4						46						(7)						509
			$	4,568					$	755					$	53					$	(7)					$	5,369
Property, plant and equipment, net			$	2,457					$	1,559					$	92					$	—					$	4,108
Long-term debt, net:
Current portion			$	3					$	—					$	191					$	—					$	194
Non-current portion			2,604						4						196						—						2,804
			$	2,607					$	4					$	387					$	—					$	2,998

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TDS Telecom Highlights
(Unaudited)
			Three Months Ended September 30,																		Nine Months Ended September 30,
			2021						2020						2021 vs. 2020						2021						2020						2021 vs. 2020
(Dollars in millions)
Operating revenues
Residential
Wireline, Incumbent			$	87					$	85					3		%				$	258					$	246					5		%
Wireline, Expansion			9						5						73		%				24						13						77		%
Cable			66						62						6		%				197						182						8		%
Total residential			162						152						6		%				479						441						8		%
Commercial			45						48						(6)		%				138						146						(5)		%
Wholesale			44						46						(5)		%				135						140						(4)		%
Total service revenues			251						247						2		%				751						727						3		%
Equipment revenues			—						—						(44)		%				1						1						(15)		%
Total operating revenues			252						247						2		%				752						728						3		%
Cost of services			102						100						3		%				301						287						5		%
Cost of equipment and products			—						—						(36)		%				—						1						(17)		%
Selling, general and administrative expenses			72						69						5		%				216						200						8		%
Depreciation, amortization and accretion			49						49						(1)		%				147						152						(4)		%
(Gain) loss on asset disposals, net			1						—						50		%				2						1						N/M
Total operating expenses			224						219						2		%				665						641						4		%
Operating income			$	27					$	28					(3)		%				$	87					$	87					(1)		%

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,
			2021						2020						2021						2020
(Dollars in millions)
Cash flows from operating activities (GAAP)			$	384					$	359					$	863					$	1,166
Less: Cash paid for additions to property, plant and equipment			270						304						726						914
Free cash flow (Non-GAAP)1			$	114					$	54					$	137					$	252

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.

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