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Business Segment Information (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Business segment information
Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2019 and 2018, is as follows. See Note 1 — Basis of Presentation for additional information. 
 
 
 
TDS Telecom
 
 
 
 
Three Months Ended or as of June 30, 2019
U.S. Cellular
 
Wireline
 
Cable
 
TDS Telecom Total1
 
Corporate, Eliminations and Other
 
Total
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Operating revenues
 
 
 
 
 
 
 
 
 
 
 
Service
$
757

 
$
172

 
$
62

 
$
233

 
$
23

 
$
1,013

Equipment and product sales
216

 
—

 
—

 
—

 
32

 
248

Total operating revenues
973

 
172

 
62

 
233

 
55

 
1,261

Cost of services (excluding Depreciation, amortization and accretion reported below)
193

 
64

 
27

 
91

 
20

 
304

Cost of equipment and products
224

 
—

 
—

 
—

 
25

 
249

Selling, general and administrative
344

 
49

 
15

 
64

 
13

 
421

Depreciation, amortization and accretion
177

 
33

 
17

 
50

 
7

 
234

(Gain) loss on asset disposals, net
5

 
(1
)
 
—

 
(1
)
 
1

 
5

Operating income (loss)
30

 
27

 
2

 
29

 
(11
)
 
48

Equity in earnings of unconsolidated entities
40

 
—

 
—

 
—

 
1

 
41

Interest and dividend income
5

 
3

 
—

 
3

 
1

 
9

Interest expense
(29
)
 
1

 
—

 
1

 
(15
)
 
(43
)
Income (loss) before income taxes
46

 
30

 
3

 
33

 
(24
)
 
55

Income tax expense (benefit)2
14

 


 


 
8

 
(6
)
 
16

Net income (loss)
32

 


 


 
25

 
(18
)
 
39

Add back:
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and accretion
177

 
33

 
17

 
50

 
7

 
234

(Gain) loss on asset disposals, net
5

 
(1
)
 
—

 
(1
)
 
1

 
5

Interest expense
29

 
(1
)
 
—

 
(1
)
 
15

 
43

Income tax expense (benefit)2
14

 


 


 
8

 
(6
)
 
16

Adjusted EBITDA3
$
257

 
$
62

 
$
20

 
$
82

 
$
(2
)
 
$
337

 


 


 


 


 


 


Investments in unconsolidated entities
$
450

 
$
4

 
$
—

 
$
4

 
$
36

 
$
490

Total assets
$
8,223

 
$
1,377

 
$
641

 
$
2,009

 
$
563

 
$
10,795

Capital expenditures
$
195

 
$
55

 
$
15

 
$
70

 
$
(1
)
 
$
264

 
 
 
TDS Telecom
 
 
 
 
Three Months Ended or as of June 30, 2018
U.S. Cellular
 
Wireline
 
Cable
 
TDS Telecom Total1
 
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)2
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)2
18

 


 


 
5

 
(2
)
 
21

Adjusted EBITDA3
$
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
 
 
 
 
Six Months Ended or as of June 30, 2019
U.S. Cellular
 
Wireline
 
Cable
 
TDS Telecom Total1
 
Corporate, Eliminations and Other
 
Total
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Operating revenues

 

 

 

 

 

Service
$
1,498

 
$
342

 
$
121

 
$
463

 
$
47

 
$
2,008

Equipment and product sales
441

 
1

 
—

 
1

 
68

 
510

Total operating revenues
1,939

 
343

 
121

 
464

 
115

 
2,518

Cost of services (excluding Depreciation, amortization and accretion reported below)
369

 
127

 
52

 
179

 
40

 
588

Cost of equipment and products
458

 
1

 
—

 
1

 
54

 
513

Selling, general and administrative
669

 
96

 
30

 
125

 
25

 
819

Depreciation, amortization and accretion
345

 
66

 
34

 
100

 
15

 
460

(Gain) loss on asset disposals, net
7

 
(8
)
 
1

 
(8
)
 
1

 
—

(Gain) loss on sale of business and other exit costs, net
(2
)
 
—

 
—

 
—

 
—

 
(2
)
(Gain) loss on license sales and exchanges, net
(2
)
 
—

 
—

 
—

 
—

 
(2
)
Operating income (loss)
95

 
61

 
5

 
66

 
(19
)
 
142

Equity in earnings of unconsolidated entities
84

 
—

 
—

 
—

 
1

 
85

Interest and dividend income
11

 
5

 
1

 
6

 
—

 
17

Interest expense
(58
)
 
1

 
—

 
1

 
(29
)
 
(86
)
Other, net
(1
)
 
—

 
—

 
—

 
2

 
1

Income (loss) before income taxes
131

 
68

 
6

 
74

 
(46
)
 
159

Income tax expense (benefit)2
41

 


 


 
18

 
(9
)
 
50

Net income (loss)
90

 


 


 
56

 
(37
)
 
109

Add back:


 


 


 


 


 


Depreciation, amortization and accretion
345

 
66

 
34

 
100

 
15

 
460

(Gain) loss on asset disposals, net
7

 
(8
)
 
1

 
(8
)
 
1

 
—

(Gain) loss on sale of business and other exit costs, net
(2
)
 
—

 
—

 
—

 
—

 
(2
)
(Gain) loss on license sales and exchanges, net
(2
)
 
—

 
—

 
—

 
—

 
(2
)
Interest expense
58

 
(1
)
 
—

 
(1
)
 
29

 
86

Income tax expense (benefit)2
41

 


 


 
18

 
(9
)
 
50

Adjusted EBITDA3
$
537

 
$
125

 
$
40

 
$
165

 
$
(1
)
 
$
701

 


 


 


 


 


 


Capital expenditures
$
297

 
$
84

 
$
28

 
$
112

 
$
2

 
$
411


 
 
 
TDS Telecom
 
 
 
 
Six Months Ended or as of June 30, 2018
U.S. Cellular
 
Wireline
 
Cable
 
TDS Telecom Total1
 
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)2
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)2
40

 
 
 
 
 
12

 
(7
)
 
45

Adjusted EBITDA3
$
507

 
$
124

 
$
32

 
$
156

 
$
(4
)
 
$
659

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
$
155

 
$
62

 
$
24

 
$
87

 
$
11

 
$
253


Numbers may not foot due to rounding.
1 
TDS Telecom Total includes eliminations between the Wireline and Cable segments.
2 
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”.
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.