Business Segment (Tables)

12 Months Ended

Dec. 31, 2012

Year Ended or at December 31, 2012
			TDS Telecom
	U.S.Cellular		ILEC		CLEC		HMS		TDSTelecom Eliminations		TDS Telecom Total		Non- Reportable Segment (1)		Other Reconciling Items (2)		Total
(Dollars in thousands)
Operating revenues	$	4,452,084	$	578,412	$	173,397	$	113,010	$	(10,313)	$	854,506	$	60,830	$	(22,143)	$	5,345,277
Cost of services and products (excluding Depreciation, amortization and accretion reported below)		1,882,752		192,514		89,949		75,781		(8,650)		349,594		42,150		(1,926)		2,272,570
Selling, general and administrative expense		1,764,933		170,493		66,886		34,193		(1,663)		269,909		16,189		(17,130)		2,033,901
Adjusted OIBDA (3)		804,399		215,405		16,562		3,036		-		235,003		2,491		(3,087)		1,038,806
Depreciation, amortization and accretion expense		608,633		150,557		21,969		20,568		-		193,094		6,102		5,797		813,626
Loss on impairment of assets		-		-		-		-		-		-		515		-		515
(Gain) loss on asset disposals and exchanges, net		18,088		535		485		108		-		1,128		(1)		526		19,741
(Gain) loss on sale of business and other exit costs, net		21,022		39		-		-		-		39		-		-		21,061
Operating income (loss)		156,656		64,274		(5,892)		(17,640)		-		40,742		(4,125)		(9,410)		183,863
Equity in earnings of unconsolidated entities		90,364		10		-		-		-		10		-		2,493		92,867
Interest and dividend income		3,644		2,805		280		25		-		3,110		8		2,486		9,248
Gain (loss) on investment		(3,718)		-		-		-		-		-		-		-		(3,718)
Interest expense (Capitalized interest)		42,393		(2,458)		(216)		1,160		-		(1,514)		3,938		41,928		86,745
Other, net		500		(353)		-		(1)		-		(354)		575		(1)		720
Income before income taxes		205,053		69,194		(5,396)		(18,776)		-		45,022		(7,480)		(46,360)		196,235

Investments in unconsolidated entities		144,531		3,809		-		-		-		3,809		-		31,581		179,921
Total assets		6,587,450		1,407,892		111,806		267,798		-		1,787,496		62,931		186,023		8,623,900
Capital expenditures	$	836,748	$	137,115	$	21,465	$	15,344	$	-	$	173,924	$	1,789	$	(7,840)	$	1,004,621

Year Ended or at December 31, 2011
			TDS Telecom
	U.S.Cellular		ILEC		CLEC		HMS		TDSTelecom Eliminations		TDS Telecom Total		Non- Reportable Segment (1)		Other Reconciling Items (2)		Total
(Dollars in thousands)
Operating revenues	$	4,343,346	$	597,811	$	180,332	$	47,180	$	(9,935)	$	815,388	$	45,133	$	(23,396)	$	5,180,471
Cost of services and products (excluding Depreciation, amortization and accretion reported below)		1,721,181		191,591		91,348		23,502		(8,238)		298,203		32,952		(1,692)		2,050,644
Selling, general and administrative expense		1,769,701		158,302		64,509		15,647		(1,697)		236,761		8,609		(12,712)		2,002,359
Adjusted OIBDA (3)		852,464		247,918		24,475		8,031		-		280,424		3,572		(8,992)		1,127,468
Depreciation, amortization and accretion expense		573,557		145,687		21,976		12,867		-		180,530		3,021		8,668		765,776
Loss on impairment of assets		-		-		-		-		-		-		-		-		-
(Gain) loss on asset disposals and exchanges, net		(1,873)		1,043		85		115		-		1,243		(197)		17		(810)
Operating income (loss)		280,780		101,188		2,414		(4,951)		-		98,651		748		(17,677)		362,502
Equity in earnings of unconsolidated entities		83,566		8		-		-		-		8		-		(1,036)		82,538
Interest and dividend income		3,395		3,252		296		-		-		3,548		2		2,200		9,145
Gain (loss) on investment		11,373		-		-		-		-		-		-		12,730		24,103
Interest expense (Capitalized interest)		65,614		(2,406)		(296)		78		-		(2,624)		1,359		53,852		118,201
Other, net		(678)		2,720		(1)		(9)		-		2,710		650		976		3,658
Income before income taxes		312,822		109,574		3,005		(5,038)		-		107,541		41		(56,659)		363,745

Investments in unconsolidated entities		138,096		3,808		-		-		-		3,808		-		31,806		173,710
Total assets		6,327,976		1,376,131		118,231		209,109		-		1,703,471		68,870		100,688		8,201,005
Capital expenditures	$	782,526	$	141,802	$	22,361	$	26,999	$	-	$	191,162	$	3,206	$	10,324	$	987,218

Year Ended or at December 31, 2010
				TDS Telecom
		U.S.Cellular		ILEC		CLEC		HMS		TDSTelecom Eliminations		TDS Telecom Total		Non- Reportable Segment (1)		Other Reconciling Items (2)		Total
(Dollars in thousands)
Operating revenues		$	4,177,681	$	606,844	$	187,984	$	10,550	$	(9,536)	$	795,842	$	40,167	$	(26,861)	$	4,986,829
Cost of services and products (excluding Depreciation, amortization and accretion reported below)			1,611,221		192,699		96,934		3,599		(8,848)		284,384		31,019		(1,761)		1,924,863
Selling, general and administrative expense			1,783,315		168,783		64,107		4,237		(688)		236,439		6,307		(27,598)		1,998,463
Adjusted OIBDA (3)			783,145		245,362		26,943		2,714		-		275,019		2,841		2,498		1,063,503
Depreciation, amortization and accretion expense			570,955		146,351		24,679		3,024		-		174,054		1,888		8,752		755,649
Loss on impairment of assets			-		-		-		-		-		-		-		-		-
(Gain) loss on asset disposals and exchanges, net			10,717		572		362		197		-		1,131		(76)		(9)		11,763
Operating income (loss)			201,473		98,439		1,902		(507)		-		99,834		1,029		(6,245)		296,091
Equity in earnings of unconsolidated entities			97,318		13		-		-		-		13		-		743		98,074
Interest and dividend income			3,808		2,833		293		1		-		3,127		-		3,573		10,508
Gain (loss) on investment			-		-		-		-		-		-		-		-		-
Interest expense (Capitalized interest)			61,555		(711)		(180)		59		-		(832)		430		55,657		116,810
Other, net			72		(2,474)		-		(4)		-		(2,478)		616		(299)		(2,089)
Income before income taxes			241,116		99,522		2,375		(569)		-		101,328		1,215		(57,885)		285,774

Investments in unconsolidated entities			160,847		13		-		-		-		13		-		37,062		197,922
Total assets			5,875,549		1,443,548		123,762		34,537		-		1,601,847		22,709		196,012		7,696,117
Capital expenditures		$	583,134	$	123,645	$	20,303	$	13,357	$	-	$	157,305	$	1,029	$	13,564	$	755,032

(1)	Represents Suttle-Straus and, as of September 23, 2011, Airadigm.

(2)	Consists of corporate operations and intercompany eliminations between U.S. Cellular, TDS Telecom, the Non-Reportable Segment and corporate operations.

(3)	Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the loss on impairment of assets (if any); the net gain or loss on asset disposals and exchanges (if any); and the net gain or loss on sale of business and other exit costs (if any). Adjusted OIBDA excludes the loss on impairment of assets (if any), the net gain or loss on asset disposals and exchanges (if any), and the net gain or loss on sale of business and other exit costs (if any) in order to show operating results on a more comparable basis from period to period. TDS does not intend to imply that any of such amounts that are excluded are non-recurring, infrequent or unusual; such gains or losses may occur in the future. Adjusted OIBDA is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. This amount may also be commonly referred to by management as operating cash flow. TDS believes this measure provides useful information to investors regarding TDS’ financial condition and results of operations because it highlights certain key cash and non-cash items and their impacts on cash flows from operating activities. This amount should not be confused with Cash flows from operating activities, which is a component of the Consolidated Statement of Cash Flows.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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