Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2018 and 2017, is as follows. See Note 1 — Basis of Presentation for additional information.

					TDS Telecom
Three Months Ended or as of June 30, 2018¹			U.S. Cellular		Wireline		Cable		TDS Telecom Total2		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service		$	741	$	173	$	57	$	230	$	22	$	993
	Equipment and product sales			233		–		–		1		28		262
		Total operating revenues		974		174		57		230		51		1,255
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			187		67		27		93		20		300
Cost of equipment and products				240		–		–		–		26		266
Selling, general and administrative				342		50		15		64		11		417
Depreciation, amortization and accretion				159		36		18		53		8		220
(Gain) loss on asset disposals, net				1		1		–		1		–		2
(Gain) loss on license sales and exchanges, net				(11)		–		–		–		–		(11)
Operating income (loss)				56		21		(3)		18		(13)		61
Equity in earnings of unconsolidated entities				40		–		–		–		–		40
Interest and dividend income				3		2		–		2		1		6
Interest expense				(29)		–		–		–		(14)		(43)
Other, net				–		1		–		1		–		1
Income (loss) before income taxes				70		24		(2)		21		(26)		65
Income tax expense (benefit)3				18						5		(2)		21
Net income (loss)				52						16		(24)		44
Add back:
Depreciation, amortization and accretion				159		36		18		53		8		220
(Gain) loss on asset disposals, net				1		1		–		1		–		2
(Gain) loss on license sales and exchanges, net				(11)		–		–		–		–		(11)
Interest expense				29		–		–		–		14		43
Income tax expense (benefit)3				18						5		(2)		21
Adjusted EBITDA4			$	248	$	59	$	16	$	75	$	(4)	$	319

Investments in unconsolidated entities			$	439	$	4	$	–	$	4	$	34	$	477
Total assets			$	7,075	$	1,260	$	643	$	1,893	$	530	$	9,498
Capital expenditures			$	86	$	33	$	13	$	46	$	6	$	138

					TDS Telecom
Three Months Ended or as of June 30, 2017			U.S. Cellular			Wireline		Cable		TDS Telecom Total2		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service		$	740		$	180	$	51	$	231	$	21	$	992
	Equipment and product sales			223			–		–		–		32		255
		Total operating revenues		963			181		51		231		53		1,247
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			189			65		24		89		20		298
Cost of equipment and products				260			1		–		1		26		287
Selling, general and administrative5				351			49		13		62		7		420
Depreciation, amortization and accretion				155			37		11		48		8		211
(Gain) loss on asset disposals, net				5			–		–		1		–		6
(Gain) loss on license sales and exchanges, net				(2)			–		–		–		–		(2)
Operating income (loss)5				5			28		3		31		(9)		27
Equity in earnings of unconsolidated entities				33			–		–		–		–		33
Interest and dividend income				2			1		–		1		1		4
Interest expense				(28)			–		–		–		(15)		(43)
Other, net5				–			1		–		1		–		1
Income (loss) before income taxes				12			30		3		33		(23)		22
Income tax expense (benefit)3				–							13		(3)		10
Net income (loss)				12							20		(20)		12
Add back:
Depreciation, amortization and accretion				155			37		11		48		8		211
(Gain) loss on asset disposals, net				5			–		–		1		–		6
(Gain) loss on license sales and exchanges, net				(2)			–		–		–		–		(2)
Interest expense				28			–		–		–		15		43
Income tax expense (benefit)3				–							13		(3)		10
Adjusted EBITDA4			$	198		$	67	$	14	$	82	$	–	$	280

Investments in unconsolidated entities			$	414		$	4	$	–	$	4	$	34	$	452
Total assets			$	7,077		$	1,200	$	611	$	1,813	$	488	$	9,378
Capital expenditures			$	84		$	33	$	12	$	45	$	5	$	134

					TDS Telecom
Six Months Ended or as of June 30, 2018¹			U.S. Cellular		Wireline		Cable		TDS Telecom Total2		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service		$	1,465	$	348	$	112	$	460	$	45	$	1,970
	Equipment and product sales			450		1		–		1		59		510
		Total operating revenues		1,915		349		112		461		104		2,480
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			365		131		52		183		39		587
Cost of equipment and products				459		1		–		1		52		512
Selling, general and administrative				668		97		28		124		21		813
Depreciation, amortization and accretion				317		72		35		107		17		441
(Gain) loss on asset disposals, net				2		1		1		1		–		3
(Gain) loss on license sales and exchanges, net				(17)		–		–		–		–		(17)
Operating income (loss)				121		47		(4)		43		(23)		141
Equity in earnings of unconsolidated entities				78		–		–		–		–		78
Interest and dividend income				7		3		–		3		1		11
Interest expense				(58)		1		–		1		(29)		(86)
Other, net				(1)		1		–		1		2		2
Income (loss) before income taxes				147		52		(4)		48		(49)		146
Income tax expense (benefit)3				40						12		(7)		45
Net income (loss)				107						37		(43)		101
Add back:
Depreciation, amortization and accretion				317		72		35		107		17		441
(Gain) loss on asset disposals, net				2		1		1		1		–		3
(Gain) loss on license sales and exchanges, net				(17)		–		–		–		–		(17)
Interest expense				58		(1)		–		(1)		29		86
Income tax expense (benefit)3				40						12		(7)		45
Adjusted EBITDA4			$	507	$	124	$	32	$	156	$	(4)	$	659

Investments in unconsolidated entities			$	439	$	4	$	–	$	4	$	34	$	477
Total assets			$	7,075	$	1,260	$	643	$	1,893	$	530	$	9,498
Capital expenditures			$	155	$	62	$	24	$	87	$	11	$	253

					TDS Telecom
Six Months Ended or as of June 30, 2017			U.S. Cellular		Wireline		Cable		TDS Telecom Total2		Corporate, Eliminations and Other		Total
(Dollars in millions)
Operating revenues
	Service		$	1,486	$	359	$	100	$	459	$	44	$	1,989
	Equipment and product sales			413		1		–		1		82		496
		Total operating revenues		1,899		360		100		459		127		2,485
Cost of services (excluding Depreciation, amortization
	and accretion reported below)			364		129		48		176		40		580
Cost of equipment and products				488		1		–		1		68		557
Selling, general and administrative5				691		97		25		123		12		826
Depreciation, amortization and accretion				307		76		21		97		18		422
(Gain) loss on asset disposals, net				9		1		1		1		–		10
(Gain) loss on license sales and exchanges, net				(19)		–		–		–		–		(19)
Operating income (loss)5				59		56		5		61		(11)		109
Equity in earnings of unconsolidated entities				66		–		–		–		(1)		65
Interest and dividend income				5		2		–		2		1		8
Interest expense				(56)		–		–		–		(29)		(85)
Other, net5				(1)		2		–		2		1		2
Income (loss) before income taxes				73		60		5		65		(39)		99
Income tax expense (benefit)3				33						25		(14)		44
Net income (loss)				40						40		(25)		55
Add back:
Depreciation, amortization and accretion				307		76		21		97		18		422
(Gain) loss on asset disposals, net				9		1		1		1		–		10
(Gain) loss on license sales and exchanges, net				(19)		–		–		–		–		(19)
Interest expense				56		–		–		–		29		85
Income tax expense (benefit)3				33						25		(14)		44
Adjusted EBITDA4			$	426	$	137	$	27	$	164	$	7	$	597

Investments in unconsolidated entities			$	414	$	4	$	–	$	4	$	34	$	452
Total assets			$	7,077	$	1,200	$	611	$	1,813	$	488	$	9,378
Capital expenditures			$	145	$	50	$	21	$	71	$	14	$	230

Numbers may not foot due to rounding.

1		As of January 1, 2018, TDS adopted ASU 2014-09 using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASU 2014-09, but 2017 amounts remain as previously reported, except as specifically stated. See Note 2 — Revenue Recognition for additional information.

2		TDS Telecom Total includes eliminations between the Wireline and Cable segments.

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

4		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.

5		ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard.