Financial data for TDS’ reportable segments for the three month periods ended, or as of March 31, 2017 and 2016, is as follows. See Note 1 — Basis of Presentation for additional information.

					TDS Telecom
Three Months Ended or as of March 31, 2017			U.S. Cellular		Wireline		Cable		HMS		TDS Telecom Eliminations		TDS Telecom Total		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service1		$	746	$	179	$	49	$	29	$	(1)	$	256	$	(5)	$	997
	Equipment and product sales			190		–		–		43		–		43		8		241
		Total operating revenues1		936		179		49		71		(1)		299		3		1,238
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			175		63		24		20		(1)		107		–		282
Cost of equipment and products				228		1		–		36		–		36		6		270
Selling, general and administrative				339		48		13		11		–		71		(4)		406
Depreciation, amortization and accretion				153		39		10		7		–		56		2		211
(Gain) loss on asset disposals, net				4		–		–		–		–		1		(1)		4
(Gain) loss on license sales and exchanges, net				(17)		–		–		–		–		–		–		(17)
Operating income (loss)1				54		29		2		(2)		–		29		(1)		82
Equity in earnings of unconsolidated entities				33		–		–		–		–		–		(1)		32
Interest and dividend income1				3		1		–		–		–		1		–		4
Interest expense				(28)		–		–		(1)		–		(1)		(13)		(42)
Other, net				(1)		–		–		–		–		–		2		1
Income (loss) before income taxes				61		30		2		(3)		–		29		(13)		77
Income tax expense (benefit)2				33										11		(10)		34
Net income (loss)				28										18		(3)		43
Add back:
Depreciation, amortization and accretion				153		39		10		7		–		56		2		211
(Gain) loss on asset disposals, net				4		–		–		–		–		1		(1)		4
(Gain) loss on license sales and exchanges, net				(17)		–		–		–		–		–		–		(17)
Interest expense				28		–		–		1		–		1		13		42
Income tax expense (benefit)2				33										11		(10)		34
Adjusted EBITDA3			$	229	$	69	$	13	$	5	$	–	$	86	$	2	$	317

Investments in unconsolidated entities			$	434	$	4	$	–	$	–	$	–	$	4	$	34	$	472
Total assets			$	7,024	$	1,204	$	609	$	264	$	–	$	2,077	$	248	$	9,349
Capital expenditures			$	61	$	17	$	9	$	6	$	–	$	33	$	2	$	96

Numbers may not foot due to rounding.

					TDS Telecom
Three Months Ended or as of March 31, 2016			U.S. Cellular		Wireline		Cable		HMS		TDS Telecom Eliminations		TDS Telecom Total		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service1		$	771	$	173	$	45	$	29	$	(1)	$	246	$	(6)	$	1,011
	Equipment and product sales			198		–		–		35		–		35		10		243
		Total operating revenues1		969		173		45		64		(1)		281		4		1,254
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			184		62		22		21		(1)		104		–		288
Cost of equipment and products				256		1		–		29		–		30		5		291
Selling, general and administrative				361		48		12		11		–		71		(1)		431
Depreciation, amortization and accretion				153		42		9		7		–		58		1		212
(Gain) loss on asset disposals, net				5		–		1		–		–		1		–		6
Operating income (loss)1				10		20		1		(4)		–		17		(1)		26
Equity in earnings of unconsolidated entities				35		–		–		–		–		–		–		35
Interest and dividend income1				2		1		–		–		–		1		–		3
Interest expense				(28)		1		–		(1)		–		–		(13)		(41)
Other, net				1		–		(1)		–		–		(1)		–		–
Income (loss) before income taxes				20		22		–		(5)		–		17		(14)		23
Income tax expense (benefit)2				11										7		(5)		13
Net income (loss)				9										10		(9)		10
Add back:
Depreciation, amortization and accretion				153		42		9		7		–		58		1		212
(Gain) loss on asset disposals, net				5		–		1		–		–		1		–		6
Interest expense				28		(1)		–		1		–		–		13		41
Income tax expense (benefit)2				11										7		(5)		13
Adjusted EBITDA3			$	206	$	63	$	10	$	3	$	–	$	76	$	–	$	282

Investments in unconsolidated entities			$	384	$	4	$	–	$	–	$	–	$	4	$	35	$	423
Total assets			$	7,057	$	1,291	$	581	$	270	$	–	$	2,142	$	184	$	9,383
Capital expenditures			$	79	$	27	$	13	$	2	$	–	$	42	$	4	$	125

1		Equipment installment plan interest income is reflected as a component of Service revenues consistent with an accounting policy change effective January 1, 2017. All prior period numbers have been recast to conform to this accounting change. See Note 1 — Basis of Presentation for additional details.

2		Income tax expense (benefit) is not provided at the individual segment level for Wireline, Cable and HMS. TDS calculates income tax expense for “TDS Telecom Total”.

3		Adjusted earnings before interest, taxes, depreciation, amortization and accretion (“Adjusted EBITDA”) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance.