Exhibit 99.1

NEWS RELEASE

As previously announced, TDS will hold a teleconference on February 16, 2024 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 fourth quarter and full year 2023 results

Investing in our networks; Provides 2024 guidance

CHICAGO (February 16, 2024) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,313 million for the fourth quarter of 2023, versus $1,357 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(523) million and $(4.64), respectively, for the fourth quarter of 2023 compared to $(43) million and $(0.38), respectively, in the same period one year ago.

Excluding a $547 million ($511 million, net of tax impacts) non-cash charge related to goodwill impairment recorded at TDS Telecom during the fourth quarter of 2023, net income (loss) available to TDS common shareholders and related diluted earnings (loss) per share for the fourth quarter of 2023 were $(12) million and $(0.11), respectively.

TDS reported total operating revenues of $5,160 million and $5,413 million for the years ended 2023 and 2022, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(569) million and $(5.06), respectively, for the year ended 2023 compared to $(7) million and $(0.07), respectively, for the year ended 2022.

Excluding a $547 million ($511 million, net of tax impacts) non-cash charge related to goodwill impairment recorded at TDS Telecom during the fourth quarter of 2023, net income (loss) available to TDS common shareholders and related diluted earnings (loss) per share for the year ended 2023 were $(58) million and $(0.53), respectively.

Full year 2023 Highlights*

UScellular

•Postpaid ARPU grew 2%

•Delivering on growth initiatives

◦Fixed wireless customers grew 46% to 114,000

◦Tower rental revenues grew 8% to $100 million

•Increased profitability

◦Net income, Adjusted OIBDA and Adjusted EBITDA up

•Generated positive free cash flow and increased cash flows from operating activities

•Began launching 5G mid-band network - providing low latency and faster speeds

TDS Telecom

•Exceeded full year 2023 fiber address goal

◦Delivered 217,000 fiber service addresses

•Executing on fiber broadband strategy

◦Expanded its footprint 12% - increased total service addresses to 1.7 million

◦Residential broadband connections grew 6% and Residential revenue per connection grew 4%

◦Total Wireline expansion residential revenues grew to $75 million

*Comparisons are Year Ended December 31, 2023 to Year Ended December 31, 2022

1

“In 2023, the TDS Family of Companies continued to make substantial investments in our businesses in order to improve our competitiveness,” said LeRoy T. Carlson, Jr., TDS President and CEO. “UScellular made significant progress on its 5G network, while TDS Telecom ended the year with all of its fiber expansion communities initially launched.

“UScellular increased Postpaid ARPU 2% and drove strong results in fixed wireless in 2023. It was a challenging year from a mobility subscriber standpoint as the environment remains competitive. UScellular’s goal was to balance subscriber objectives with financial goals, which led to increased profitability year over year.

"In 2024, UScellular plans to continue focusing on improving customer results, growth in fixed wireless and towers, and maintaining financial discipline as we advance the network through mid-band deployment.

“In 2023, TDS Telecom delivered 217,000 marketable fiber service addresses, up 24% from the initial 2023 target. Residential broadband connections increased 6%, while residential revenue per connection grew 4%. With all markets launched, the team plans to focus on increasing broadband penetration and revenues across the fiber footprint. We expect this to result in improved profitability in 2024.”

Recent Development: 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. The process is still ongoing.

2

2024 Estimated Results

TDS’ current estimates of full-year 2024 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of February 16, 2024 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.

UScellular			2024 Estimated Results						Actual Results for the Year Ended December 31, 2023
(Dollars in millions)
Service revenues			$2,950-$3,050						$3,044
Adjusted OIBDA1, 2			$750-$850						$818
Adjusted EBITDA1, 2			$920-$1,020						$986
Capital expenditures			$550-$650						$611
TDS Telecom			2024 Estimated Results						Actual Results for the Year Ended December 31, 2023
(Dollars in millions)
Total operating revenues			$1,070-$1,100						$1,028
Adjusted OIBDA1			$310-$340						$279
Adjusted EBITDA1			$310-$340						$285
Capital expenditures			$310-$340						$577

3

The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) or Income (loss) before income taxes. In providing 2024 estimated results, TDS has not completed the below reconciliation to Net income (loss) 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.

			UScellular												TDS Telecom
			2024 Estimated Results2						Actual Results for the Year Ended December 31, 2023						2024 Estimated Results2						Actual Results for the Year Ended December 31, 2023
(Dollars in millions)
Net income (loss) (GAAP)			N/A						$58						N/A						($483)
Add back:
Income tax expense			N/A						53						N/A						(26)
Income (loss) before income taxes (GAAP)			$40-$140						$111						$40-$70						($509)
Add back:
Interest expense			195						196						—						(8)
Depreciation, amortization and accretion expense			665						656						270						245
EBITDA (Non-GAAP)1			$900-$1,000						$963						$310-$340						($272)
Add back or deduct:
Expenses related to strategic alternatives review			—						8						—						—
Loss on impairment of goodwill			—						—						—						547
(Gain) loss on asset disposals, net			20						17						—						10
(Gain) loss on license sales and exchanges, net			—						(2)						—						—
Adjusted EBITDA (Non-GAAP)1			$920-$1,020						$986						$310-$340						$285
Deduct:
Equity in earnings of unconsolidated entities			160						158						—						—
Interest and dividend income			10						10						—						4
Other, net			—						—						—						2
Adjusted OIBDA (Non-GAAP)1			$750-$850						$818						$310-$340						$279

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 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, nonrecurring expenses, 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, gains and losses, and expenses related to the strategic alternatives review of UScellular 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 (loss) or Income (loss) before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for December 31, 2023, can be found on TDS' website at investors.tdsinc.com.

22024 Estimated Results do not reflect any anticipated costs, expenses or results of the strategic alternatives review referenced above.

4

Conference Call Information

TDS will hold a conference call on February 16, 2024 at 9:00 a.m. Central Time.

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

https://events.q4inc.com/attendee/105947395

•Access the call by phone at (888) 330-2384 (US/Canada), passcode: 1328528

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 8,800 people as of December 31, 2023.

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

Contacts

Colleen Thompson, Vice President - Corporate Relations

colleen.thompson@tdsinc.com

Julie 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: whether any strategic alternatives for UScellular will be successfully identified or completed; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS’ businesses; intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; 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 with which TDS does business; 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 effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; 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; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. 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.

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

5

United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended			12/31/2023						9/30/2023						6/30/2023						3/31/2023						12/31/2022
Retail Connections
Postpaid
Total at end of period			4,106,000						4,159,000						4,194,000						4,223,000						4,247,000
Gross additions			129,000						128,000						125,000						137,000						154,000
Handsets			80,000						84,000						83,000						93,000						105,000
Connected devices			49,000						44,000						42,000						44,000						49,000
Net additions (losses)			(50,000)						(35,000)						(28,000)						(24,000)						(17,000)
Handsets			(53,000)						(38,000)						(29,000)						(25,000)						(20,000)
Connected devices			3,000						3,000						1,000						1,000						3,000
ARPU1			$	51.61					$	51.11					$	50.64					$	50.66					$	50.60
ARPA2			$	131.63					$	130.91					$	130.19					$	130.77					$	130.97
Handset upgrade rate3			5.8		%				4.5		%				4.8		%				4.9		%				7.0		%
Churn rate4			1.44		%				1.30		%				1.21		%				1.27		%				1.35		%
Handsets			1.22		%				1.11		%				1.01		%				1.06		%				1.12		%
Connected devices			3.03		%				2.64		%				2.65		%				2.78		%				2.99		%
Prepaid
Total at end of period			451,000						462,000						462,000						470,000						493,000
Gross additions			43,000						52,000						50,000						43,000						61,000
Net additions (losses)			(11,000)						—						(8,000)						(23,000)						—
ARPU1, 5			$	32.32					$	33.44					$	33.86					$	33.19					$	33.34
Churn rate4			3.87		%				3.68		%				4.18		%				4.63		%				4.11		%
Market penetration at end of period
Consolidated operating population			32,350,000						32,350,000						32,350,000						32,350,000						32,370,000
Consolidated operating penetration6			15		%				15		%				15		%				15		%				15		%
Capital expenditures (millions)			$	148					$	111					$	143					$	208					$	176
Total cell sites in service			7,000						6,973						6,952						6,950						6,945
Owned towers			4,373						4,356						4,341						4,338						4,336

Due to rounding, the sum of quarterly results may not equal the total for the year.

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.

3Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.

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.

5Fourth quarter 2023 Prepaid ARPU excludes a $6 million reduction of prepaid revenue related to an adjustment to correct a prior period error recorded in the fourth quarter of 2023.

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.

6

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended			12/31/2023						9/30/2023						6/30/2023						3/31/2023						12/31/2022
Residential connections
Broadband
Wireline, Incumbent			244,800						248,800						249,200						247,900						249,100
Wireline, Expansion			92,200						79,400						70,200						62,800						56,100
Cable			202,900						204,400						204,200						204,700						204,800
Total Broadband			539,800						532,600						523,600						515,400						510,000
Video			131,500						132,400						132,300						132,600						135,300
Voice			281,600						284,000						288,200						289,200						291,600
Total Residential connections			952,900						949,000						944,100						937,200						936,900
Commercial connections			210,200						217,400						223,300						229,800						236,000
Total connections			1,163,100						1,166,400						1,167,400						1,167,000						1,173,000
Residential revenue per connection1			$	62.74					$	62.15					$	61.97					$	60.24					$	59.91
Capital expenditures (millions)			$	143					$	172					$	132					$	130					$	165

Numbers may not foot due to rounding.

1Total 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.

7

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

			Three Months Ended December 31,																		Year Ended December 31,
			2023						2022						2023 vs. 2022						2023						2022						2023 vs. 2022
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular			$	1,000					$	1,048					(5)		%				$	3,906					$	4,169					(6)		%
TDS Telecom			261						257						2		%				1,028						1,020						1		%
All Other1			52						52						(1)		%				226						224						1		%
			1,313						1,357						(3)		%				5,160						5,413						(5)		%
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion			812						885						(8)		%				3,096						3,379						(8)		%
Depreciation, amortization and accretion			166						179						(8)		%				656						700						(6)		%
Loss on impairment of licenses			—						—						—						—						3						N/M
(Gain) loss on asset disposals, net			3						11						(67)		%				17						19						(9)		%
(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						(2)						—						N/M
			979						1,075						(9)		%				3,767						4,100						(8)		%
TDS Telecom
Expenses excluding depreciation, amortization and accretion			186						192						(4)		%				749						732						2		%
Depreciation, amortization and accretion			65						56						17		%				245						215						14		%
Loss on impairment of goodwill			547						—						N/M						547						—						N/M
(Gain) loss on asset disposals, net			1						3						(59)		%				10						7						31		%
			799						252						N/M						1,551						954						63		%
All Other1
Expenses excluding depreciation and amortization			56						52						8		%				242						222						9		%
Depreciation and amortization			3						3						(6)		%				14						14						(2)		%
(Gain) loss on asset disposals, net			—						—						N/M						—						1						(95)		%
			59						56						7		%				256						237						8		%
Total operating expenses			1,837						1,383						33		%				5,574						5,291						5		%
Operating income (loss)
UScellular			21						(27)						N/M						139						69						N/M
TDS Telecom			(538)						5						N/M						(523)						66						N/M
All Other1			(7)						(4)						N/M						(30)						(13)						N/M
			(524)						(26)						N/M						(414)						122						N/M
Investment and other income (expense)
Equity in earnings of unconsolidated entities			37						36						4		%				159						159						–
Interest and dividend income			4						7						(41)		%				20						17						19		%
Interest expense			(66)						(55)						(20)		%				(244)						(174)						(40)		%
Other, net			1						—						N/M						2						1						94		%
Total investment and other income (expense)			(24)						(12)						(96)		%				(63)						3						N/M
Income (loss) before income taxes			(548)						(38)						N/M						(477)						125						N/M
Income tax expense (benefit)			(45)						(8)						N/M						10						53						(81)		%
Net income (loss)			(503)						(30)						N/M						(487)						72						N/M
Less: Net income (loss) attributable to noncontrolling interests, net of tax			3						(4)						N/M						13						10						28		%
Net income (loss) attributable to TDS shareholders			(506)						(26)						N/M						(500)						62						N/M
TDS Preferred Share dividends			17						17						—						69						69						–
Net loss attributable to TDS common shareholders			$	(523)					$	(43)					N/M						$	(569)					$	(7)					N/M
Basic weighted average shares outstanding			113						113						–						113						114						(1)		%
Basic earnings (loss) per share attributable to TDS common shareholders			$	(4.64)					$	(0.38)					N/M						$	(5.05)					$	(0.07)					N/M
Diluted weighted average shares outstanding			113						113						–						113						114						(1)		%
Diluted earnings (loss) per share attributable to TDS common shareholders			$	(4.64)					$	(0.38)					N/M						$	(5.06)					$	(0.07)					N/M
N/M - Percentage change not meaningful.
Numbers may not foot due to rounding.

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

8

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Year Ended December 31,			2023						2022
(Dollars in millions)
Cash flows from operating activities
Net income (loss)			$	(487)					$	72
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion			915						929
Bad debts expense			111						138
Stock-based compensation expense			41						42
Deferred income taxes, net			8						47
Equity in earnings of unconsolidated entities			(159)						(159)
Distributions from unconsolidated entities			150						145
Loss on impairment of intangible assets			547						3
(Gain) loss on asset disposals, net			27						27
(Gain) loss on sale of business and other exit costs, net			—						(1)
(Gain) loss on license sales and exchanges, net			(2)						—
Other operating activities			8						10
Changes in assets and liabilities from operations
Accounts receivable			2						(69)
Equipment installment plans receivable			(20)						(199)
Inventory			61						(90)
Accounts payable			(99)						32
Customer deposits and deferred revenues			(8)						48
Accrued taxes			50						127
Other assets and liabilities			(3)						53
Net cash provided by operating activities			1,142						1,155
Cash flows from investing activities
Cash paid for additions to property, plant and equipment			(1,211)						(1,161)
Cash paid for licenses and other intangible assets			(130)						(614)
Other investing activities			14						(8)
Net cash used in investing activities			(1,327)						(1,783)
Cash flows from financing activities
Issuance of long-term debt			1,081						1,154
Repayment of long-term debt			(723)						(332)
Issuance of short-term debt			—						110
Repayment of short-term debt			(60)						(50)
TDS Common Shares reissued for benefit plans, net of tax payments			(3)						(4)
UScellular Common Shares reissued for benefit plans, net of tax payments			(6)						(5)
Repurchase of TDS Common Shares			(6)						(40)
Repurchase of UScellular Common Shares			—						(43)
Dividends paid to TDS shareholders			(153)						(151)
Payment of debt and equity issuance costs			(5)						(2)
Distributions to noncontrolling interests			(3)						(3)
Cash paid for software license agreements			(66)						(23)
Other financing activities			—						2
Net cash provided by financing activities			56						613
Net decrease in cash, cash equivalents and restricted cash			(129)						(15)
Cash, cash equivalents and restricted cash
Beginning of period			399						414
End of period			$	270					$	399

9

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

December 31,			2023						2022
(Dollars in millions)
Current assets
Cash and cash equivalents			$	236					$	360
Accounts receivable, net			1,074						1,181
Inventory, net			208						268
Prepaid expenses			86						102
Income taxes receivable			4						59
Other current assets			52						58
Total current assets			1,660						2,028
Assets held for sale			15						26
Licenses			4,702						4,699
Goodwill			—						547
Other intangible assets, net			183						204
Investments in unconsolidated entities			505						495
Property, plant and equipment, net			5,062						4,760
Operating lease right-of-use assets			987						995
Other assets and deferred charges			807						796
Total assets			$	13,921					$	14,550

10

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

December 31,			2023						2022
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt			$	26					$	19
Accounts payable			360						506
Customer deposits and deferred revenues			277						285
Accrued interest			12						12
Accrued taxes			43						46
Accrued compensation			149						144
Short-term operating lease liabilities			147						146
Other current liabilities			170						356
Total current liabilities			1,184						1,514
Deferred liabilities and credits
Deferred income tax liability, net			975						969
Long-term operating lease liabilities			890						908
Other deferred liabilities and credits			784						813
Long-term debt, net			4,080						3,731
Noncontrolling interests with redemption features			12						12
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share			1						1
Capital in excess of par value			2,558						2,551
Preferred Shares, par value $0.01 per share			1,074						1,074
Treasury shares, at cost			(465)						(481)
Accumulated other comprehensive income			11						5
Retained earnings			2,023						2,699
Total TDS shareholders' equity			5,202						5,849
Noncontrolling interests			794						754
Total equity			5,996						6,603
Total liabilities and equity			$	13,921					$	14,550

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Balance Sheet Highlights

(Unaudited)

			December 31, 2023
			UScellular						TDS Telecom						TDS Corporate & Other						Intercompany Eliminations						TDS Consolidated
(Dollars in millions)
Cash and cash equivalents			$	150					$	37					$	90					$	(41)					$	236
Licenses and other intangible assets			$	4,693					$	187					$	5					$	—					$	4,885
Investment in unconsolidated entities			461						4						48						(8)						505
			$	5,154					$	191					$	53					$	(8)					$	5,390
Property, plant and equipment, net			$	2,576					$	2,402					$	84					$	—					$	5,062
Long-term debt, net:
Current portion			$	20					$	—					$	6					$	—					$	26
Non-current portion			3,044						3						1,033						—						4,080
			$	3,064					$	3					$	1,039					$	—					$	4,106

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TDS Telecom Highlights

(Unaudited)

			Three Months Ended December 31,																		Year Ended December 31,
			2023						2022						2023 vs. 2022						2023						2022						2023 vs. 2022
(Dollars in millions)
Operating revenues
Residential
Wireline, Incumbent			$	88					$	87					1		%				$	352					$	350					1		%
Wireline, Expansion			23						14						61		%				75						49						53		%
Cable			69						67						2		%				273						270						1		%
Total residential			179						168						6		%				700						669						5		%
Commercial			37						43						(13)		%				155						173						(10)		%
Wholesale			45						45						(1)		%				172						177						(3)		%
Total service revenues			261						256						2		%				1,027						1,019						1		%
Equipment revenues			—						—						(22)		%				1						1						(12)		%
Total operating revenues			261						257						2		%				1,028						1,020						1		%
Cost of services			104						110						(5)		%				423						418						1		%
Cost of equipment and products			—						—						N/M						—						1						(26)		%
Selling, general and administrative expenses			82						83						(1)		%				326						313						4		%
Depreciation, amortization and accretion			65						56						17		%				245						215						14		%
Loss on impairment of goodwill			547						—						N/M						547						—						N/M
(Gain) loss on asset disposals, net			1						3						(59)		%				10						7						31		%
Total operating expenses			799						252						N/M						1,551						954						63		%
Operating income (loss)			$	(538)					$	5					N/M						$	(523)					$	66					N/M

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

Free Cash Flow

			Three Months Ended December 31,												Year Ended December 31,
TDS Consolidated			2023						2022						2023						2022
(Dollars in millions)
Cash flows from operating activities (GAAP)			$	218					$	255					$	1,142					$	1,155
Cash paid for additions to property, plant and equipment			(304)						(367)						(1,211)						(1,161)
Cash paid for software license agreements			(37)						(18)						(66)						(23)
Free cash flow (Non-GAAP)1			$	(123)					$	(130)					$	(135)					$	(29)

			Three Months Ended December 31,												Year Ended December 31,
UScellular			2023						2022						2023						2022
(Dollars in millions)
Cash flows from operating activities (GAAP)			$	148					$	180					$	866					$	832
Cash paid for additions to property, plant and equipment			(155)						(192)						(608)						(602)
Cash paid for software license agreements			(37)						(17)						(66)						(22)
Free cash flow (Non-GAAP)1			$	(44)					$	(29)					$	192					$	208

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 and Cash paid for software license agreements.

EBITDA, Adjusted EBITDA and Adjusted OIBDA

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes.

									Year Ended December 31,
UScellular															2023						2022
(Dollars in millions)
Net income (GAAP)															$	58					$	35
Add back or deduct:
Income tax benefit															53						37
Income before income taxes (GAAP)															111						72
Add back:
Interest expense															196						163
Depreciation, amortization and accretion expense															656						700
EBITDA (Non-GAAP)															963						935
Add back or deduct:
Expenses related to strategic alternatives review															8						—
Loss on impairment of licenses															—						3
(Gain) loss on asset disposals, net															17						19
(Gain) loss on sale of business and other exit costs, net															—						(1)
(Gain) loss on license sales and exchanges, net															(2)						—
Adjusted EBITDA (Non-GAAP)															986						956
Deduct:
Equity in earnings of unconsolidated entities															158						158
Interest and dividend income															10						8
Adjusted OIBDA (Non-GAAP)															$	818					$	790

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Net income excluding Goodwill impairment charge

The following non-GAAP financial measures present certain information in the table below excluding the effect of the goodwill impairment charge at TDS Telecom and related tax impacts. The goodwill impairment charge, which occurred in the fourth quarter of 2023, is being excluded in this presentation, as it is not related to the current operations of TDS. TDS believes these measures may be useful to investors and other users of its financial information when comparing the current period financial results with periods that were not impacted by such a charge.

			Three Months Ended December 31,												Year Ended December 31,
			2023						2022						2023						2022
(Dollars in millions)
Net loss attributable to TDS common shareholders (GAAP)			$	(523)					$	(43)					$	(569)					$	(7)
Adjustments:
Loss on impairment of goodwill			547						—						547						—
Deferred tax benefit on the tax-amortizable portion of the impaired Goodwill			(36)						—						(36)						—
Subtotal of Non-GAAP adjustments			511						—						511						—
Net loss attributable to TDS common shareholders excluding goodwill impairment charge (Non-GAAP)			(12)						(43)						(58)						(7)
Noncontrolling interest adjustment to compute earnings (loss)			—						—						(1)						(1)
Net loss attributable to TDS common shareholders excluding goodwill impairment charge used in diluted earnings (loss) per share (Non-GAAP)			$	(12)					$	(43)					$	(59)					$	(8)
Diluted weighted average shares outstanding			113						113						113						114
Diluted earnings (loss) per share attributable to TDS common shareholders (GAAP)			$	(4.64)					$	(0.38)					$	(5.06)					$	(0.07)
Adjustments:
Loss on impairment of goodwill			4.85						—						4.85						—
Deferred tax benefit on the tax-amortizable portion of the impaired Goodwill			(0.32)						—						(0.32)						—
Diluted earnings (loss) per share attributable to TDS common shareholders excluding impairment of goodwill charge (Non-GAAP)			$	(0.11)					$	(0.38)					$	(0.53)					$	(0.07)

15