Exhibit 99.1 NEWS RELEASE

As previously announced, TDS will hold a teleconferenceonFebruary 19, 2021 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 2020 results

2020 results at UScellular and TDS Telecom provide strong foundation for 2021

Provides 2021 guidance

CHICAGO (February 18, 2021) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,376 million for the fourth quarter of 2020, versus $1,336 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $14 million and $0.12, respectively, for the fourth quarter of 2020 compared to $12 million and $0.10, respectively, in the same period one year ago.

TDS reported total operating revenues of $5,225 million and $5,176 million for the years ended 2020 and 2019, respectively. Net income attributable to TDS shareholders and related diluted earnings per share were $226 million and $1.93, respectively, for the year ended 2020 compared to $121 million and $1.03, respectively, for the year ended 2019.

"The TDS Family of Businesses successfully overcame the challenges of 2020, finishing the year with excellent communications services, strong financial performance and heightened awareness of the essential services that TDS and our industry provides," said LeRoy T. Carlson, Jr., TDS President and CEO. "UScellular kept churn low throughout the year, acquired new retail connections, maintained strong cost discipline and produced fine financial results. Under the leadership of our new CEO, Laurent Therivel, UScellular is in a strong position to focus on growth in 2021. TDS Telecom accomplished a transformational year as execution of its broadband-focused strategy enabled it to respond to the seismic shift to remote working and learning, highlighting the importance of high-speed broadband in the home.

"UScellular grew its service revenues, driven primarily by higher ARPU, and customers taking higher-value services and it maintained operational, quality and cost discipline. These factors contributed to increased profitability year-over-year. Significant progress was achieved with both network modernization and deployment of 5G. In 2021, connecting customers, especially in underserved areas, with the highest-quality network continues to be one of UScellular’s top priorities and remains a key competitive differentiator. UScellular will also be focused on market share expansion, ramping up business and government customer opportunities that utilize 5G and IoT, enhancing customers’ digital experiences, and continuing its network modernization and 5G programs.

"TDS Telecom achieved excellent growth in residential customer connections and strong financial performance in 2020, reflecting the successful execution of its broadband strategy, bolstered by increased consumer demand for broadband services caused by the large shift to remote work and learning. Out-of-territory fiber expansions and customers increasing their data speeds drove higher revenues. Successful efforts to reduce costs enabled TDS Telecom to redirect more resources to important growth opportunities. TDS Telecom’s cable segment continued to significantly grow through the Continuum acquisition and increases in broadband penetration. TDS Telecom expanded its deployment of fiber both inside and outside of its traditional markets. Given the positive impacts we are seeing from our fiber investments, TDS Telecom plans to expand its fiber program by doubling the number of service addresses it builds in 2021.

“Our associates showed tremendous focus, resilience and dedication during this incredibly challenging year. I thank each of them. TDS’ strong performance is a direct result of their hard and thoughtful work. The TDS Team looks forward to a very successful 2021, and to the progress we will continue to make on our long-term growth initiatives throughout the TDS Family of Businesses.”

1

2021 Estimated Results

TDS’ current estimates of full-year 2021 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of February 18, 2021 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	2021 Estimated Results	Actual Results for the Year Ended December 31, 2020
(Dollars in millions)
Service revenues	$3,025-$3,125	$3,067
Adjusted OIBDA1	$800-$950	$876
Adjusted EBITDA1	$975-$1,125	$1,063
Capital expenditures	$775-$875	$940
TDS Telecom	2021 Estimated Results	Actual Results for the Year Ended December 31, 2020
(Dollars in millions)
Total operating revenues	$975-$1,025	$976
Adjusted OIBDA1	$290-$320	$314
Adjusted EBITDA1	$290-$320	$317
Capital expenditures	$425-$475	$368

2

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2021 estimated results and actual results for the year ended December 31, 2020. In providing 2021 estimated results, TDS has not completed the below reconciliation to Net income 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
	Estimate	Actual	Estimate	Actual
(Dollars in millions)
Net income (GAAP)	N/A	$233	N/A	$100
Add back:
Income tax expense	N/A	17	N/A	18
Income before income taxes (GAAP)	$135-$285	$250	$80-$110	$117
Add back:
Interest expense	135	112	—	(4)
Depreciation, amortization and accretion expense	685	683	210	203
EBITDA (Non-GAAP)1	$955-$1,105	$1,045	$290-$320	$316
Add back or deduct:
(Gain) loss on asset disposals, net	20	25	—	1
(Gain) loss on license sales and exchanges, net	—	(5)	—	—
(Gain) loss on investments	—	(2)	—	—
Adjusted EBITDA (Non-GAAP)1	$975-$1,125	$1,063	$290-$320	$317
Deduct:
Equity in earnings of unconsolidated entities	170	179	—	—
Interest and dividend income	5	8	—	5
Other, net	—	—	—	(1)
Adjusted OIBDA (Non-GAAP)1	$800-$950	$876	$290-$320	$314

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 non-recurring, 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, 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, and gains and losses, 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 or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for December 31, 2020, can be found on TDS' website at investors.tdsinc.com.

3

Conference Call Information

TDS will hold a conference call on February 19, 2021 at 9:00 a.m. Central Time.

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

https://www.webcaster4.com/Webcast/Page/1145/40052

•Access the call by phone at 833-968-2187 (US/Canada), conference ID: 5593349

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; cable and wireline broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,200 people as of December 31, 2020.

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

Contacts

Jane W. McCahon, Senior Vice President - Corporate Relations and Corporate Secretary

jane.mccahon@tdsinc.com

Julie D. 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: intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; 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; 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; 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; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. 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

4

United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended	12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019
Retail Connections
Postpaid
Total at end of period	4,412,000			4,401,000			4,372,000			4,359,000			4,383,000
Gross additions	171,000			168,000			129,000			132,000			170,000
Feature phones	2,000			4,000			3,000			2,000			2,000
Smartphones	117,000			98,000			82,000			88,000			128,000
Connected devices	52,000			66,000			44,000			42,000			40,000
Net additions (losses)	11,000			28,000			12,000			(26,000)			(12,000)
Feature phones	(9,000)			(8,000)			(8,000)			(10,000)			(11,000)
Smartphones	12,000			8,000			11,000			(10,000)			13,000
Connected devices	8,000			28,000			9,000			(6,000)			(14,000)
ARPU1	$	47.51		$	47.10		$	46.24		$	47.23		$	46.57
ARPA2	$	124.87		$	123.27		$	120.70		$	122.92		$	120.99
Churn rate3	1.21		%	1.06		%	0.89		%	1.21		%	1.38		%
Handsets	1.01		%	0.88		%	0.71		%	0.95		%	1.11		%
Connected devices	2.64		%	2.35		%	2.24		%	3.11		%	3.44		%
Prepaid
Total at end of period	499,000			506,000			496,000			494,000			506,000
Gross additions	56,000			65,000			62,000			57,000			63,000
Net additions (losses)	(8,000)			11,000			2,000			(12,000)			(3,000)
ARPU1	$	35.15		$	35.45		$	34.89		$	34.07		$	34.11
Churn rate3	4.24		%	3.59		%	4.05		%	4.67		%	4.40		%
Total connections at end of period4	4,968,000			4,962,000			4,919,000			4,903,000			4,941,000
Market penetration at end of period
Consolidated operating population	31,314,000			31,314,000			31,292,000			31,292,000			30,740,000
Consolidated operating penetration5	16		%	16		%	16		%	16		%	16		%
Capital expenditures (millions)	$	320		$	216		$	168		$	236		$	243
Total cell sites in service	6,797			6,758			6,673			6,629			6,578
Owned towers	4,271			4,246			4,208			4,184			4,166

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.

3Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.

4Includes reseller and other connections.

5Market 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.

5

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended	12/31/2020		9/30/2020		6/30/2020		3/31/2020		12/31/2019
TDS Telecom
Wireline
Residential connections
Voice1	256,900		260,000		261,800		259,100		262,100
Broadband2	262,900		260,700		255,100		242,700		241,300
Video3	63,000		62,300		61,400		59,000		58,500
Wireline residential connections	582,800		583,000		578,300		560,700		561,900
Total residential revenue per connection4	$	51.33	$	51.45	$	49.73	$	50.12	$	49.11
Commercial connections
Voice1	106,700		109,400		112,400		114,400		117,800
Broadband2	21,000		20,800		20,700		20,500		20,400
managedIP5	111,400		114,900		115,500		118,300		121,200
Video3	200		200		200		100		100
Wireline commercial connections	239,400		245,400		248,700		253,400		259,600
Total Wireline connections	822,200		828,400		827,000		814,200		821,500
Cable
Cable residential and commercial connections
Broadband6	209,400		206,200		203,700		196,800		193,500
Video7	100,800		101,800		103,400		105,100		106,600
Voice8	66,800		67,700		69,000		68,900		69,500
managedIP5	1,900		1,800		1,800		1,400		1,300
Total Cable connections	378,900		377,400		378,000		372,300		370,900

Numbers may not foot due to rounding.

1The individual circuits connecting a customer to Wireline’s central office facilities that provide voice services.

2The number of Wireline customers provided high-capacity data circuits via various technologies, including DSL and dedicated internet circuit technologies.

3The number of Wireline customers provided video services.

4Total residential revenue per connection is calculated by dividing total Wireline residential revenue by the average number of Wireline residential connections and by the number of months in the period.

5The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.

6Billable number of lines into a building for high-speed data services.

7Generally, a home or business receiving video programming counts as one video connection. In counting bulk residential or commercial connections, such as an apartment building or hotel, connections are counted based on the number of units/rooms within the building receiving service.

8Billable number of lines into a building for voice services.

TDS Telecom

Capital Expenditures (Unaudited)

Quarter Ended	12/31/2020		9/30/2020		6/30/2020		3/31/2020		12/31/2019
(Dollars in millions)
Wireline	$	122	$	74	$	58	$	39	$	98
Cable	25		18		17		15		26
Total TDS Telecom	$	147	$	92	$	75	$	54	$	124

6

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2020		2019		2020 vs. 2019		2020		2019		2020 vs. 2019
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular	$	1,073	$	1,052	2	%	$	4,037	$	4,022	–
TDS Telecom	248		235		6	%	976		930		5	%
All Other1	55		49		10	%	212		224		(6)	%
	1,376		1,336		3	%	5,225		5,176		1	%
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion	895		871		3	%	3,161		3,190		(1)	%
Depreciation, amortization and accretion	168		178		(6)	%	683		702		(3)	%
(Gain) loss on asset disposals, net	11		6		91	%	25		19		36	%
(Gain) loss on sale of business and other exit costs, net	—		—		N/M		—		(1)		N/M
(Gain) loss on license sales and exchanges, net	(5)		—		N/M		(5)		—		N/M
	1,069		1,055		1	%	3,864		3,910		(1)	%
TDS Telecom
Expenses excluding depreciation, amortization and accretion	175		162		8	%	663		629		5	%
Depreciation, amortization and accretion	50		51		(1)	%	203		200		1	%
(Gain) loss on asset disposals, net	—		—		38	%	1		(7)		N/M
	226		213		6	%	866		823		5	%
All Other1
Expenses excluding depreciation and amortization	55		53		3	%	211		235		(10)	%
Depreciation and amortization	6		7		(22)	%	23		30		(23)	%
(Gain) loss on asset disposals, net	—		—		N/M		1		—		19	%
	60		60		–		236		264		(11)	%
Total operating expenses	1,355		1,328		2	%	4,966		4,997		(1)	%
Operating income (loss)
UScellular	4		(3)		N/M		173		112		54	%
TDS Telecom	23		21		6	%	110		107		3	%
All Other1	(6)		(11)		47	%	(24)		(40)		41	%
	21		8		N/M		259		179		45	%
Investment and other income (expense)
Equity in earnings of unconsolidated entities	43		39		11	%	181		168		8	%
Interest and dividend income	3		5		(33)	%	15		29		(49)	%
Gain (loss) on investments	(1)		—		N/M		2		—		N/M
Interest expense	(50)		(37)		(36)	%	(168)		(165)		(2)	%
Other, net	—		(1)		N/M		(1)		—		N/M
Total investment and other income	(5)		6		N/M		29		32		(10)	%
Income before income taxes	16		14		13	%	288		211		36	%
Income tax expense	—		(1)		N/M		19		64		(71)	%
Net income	16		15		4	%	269		147		83	%
Less: Net income attributable to noncontrolling interests, net of tax	2		3		(44)	%	43		26		70	%
Net income attributable to TDS shareholders	$	14	$	12	18	%	$	226	$	121	86	%
Basic weighted average shares outstanding	114		115		–		114		114		–
Basic earnings per share attributable to TDS shareholders	$	0.12	$	0.10	19	%	$	1.97	$	1.06	86	%
Diluted weighted average shares outstanding	115		116		–		115		116		–
Diluted earnings per share attributable to TDS shareholders	$	0.12	$	0.10	21	%	$	1.93	$	1.03	87	%

N/M - Percentage change not meaningful.

Numbers may not foot due to rounding.

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

7

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Year Ended December 31,	2020		2019
(Dollars in millions)
Cash flows from operating activities
Net income	$	269	$	147
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	909		932
Bad debts expense	77		112
Stock-based compensation expense	53		59
Deferred income taxes, net	190		34
Equity in earnings of unconsolidated entities	(181)		(168)
Distributions from unconsolidated entities	189		162
(Gain) loss on asset disposals, net	27		12
(Gain) loss on sale of business and other exit costs, net	—		(1)
(Gain) loss on license sales and exchanges, net	(5)		—
(Gain) loss on investments	(2)		—
Other operating activities	3		4
Changes in assets and liabilities from operations
Accounts receivable	(16)		(49)
Equipment installment plans receivable	(54)		(97)
Inventory	12		(19)
Accounts payable	173		(60)
Customer deposits and deferred revenues	4		(9)
Accrued taxes	(120)		(17)
Other assets and liabilities	4		(26)
Net cash provided by operating activities	1,532		1,016
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(1,338)		(957)
Cash paid for acquisitions and licenses	(172)		(346)
Cash received from investments	1		29
Cash paid for investments	(3)		(11)
Cash received from divestitures and exchanges	26		41
Advance payments for license acquisitions	(30)		(5)
Other investing activities	5		—
Net cash used in investing activities	(1,511)		(1,249)
Cash flows from financing activities
Issuance of long-term debt	1,250		—
Repayment of long-term debt	(110)		(118)
TDS Common Shares reissued for benefit plans, net of tax payments	(3)		(6)
UScellular Common Shares reissued for benefit plans, net of tax payments	(11)		(9)
Repurchase of TDS Common Shares	(14)		—
Repurchase of UScellular Common Shares	(23)		(21)
Dividends paid to TDS shareholders	(78)		(75)
Payment of debt issuance costs	(41)		(1)
Distributions to noncontrolling interests	(2)		(4)
Payments to acquire additional interest in subsidiaries	(11)		—
Other financing activities	—		14
Net cash provided by (used in) financing activities	957		(220)
Net increase (decrease) in cash, cash equivalents and restricted cash	978		(453)
Cash, cash equivalents and restricted cash
Beginning of period	474		927
End of period	$	1,452	$	474

8

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

December 31,	2020		2019
(Dollars in millions)
Current assets
Cash and cash equivalents	$	1,429	$	465
Short-term investments	3		—
Accounts receivable, net	1,112		1,124
Inventory, net	154		169
Prepaid expenses	105		98
Income taxes receivable	187		36
Other current assets	36		29
Total current assets	3,026		1,921
Assets held for sale	2		—
Licenses	2,638		2,480
Goodwill	547		547
Other intangible assets, net	213		239
Investments in unconsolidated entities	477		488
Property, plant andequipment, net	3,972		3,527
Operating lease right-of-use assets	998		972
Other assets and deferred charges	652		607
Total assets	$	12,525	$	10,781

9

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

December 31,	2020		2019
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt	$	5	$	10
Accounts payable	508		374
Customer deposits and deferred revenues	193		189
Accrued interest	16		11
Accrued taxes	69		41
Accrued compensation	132		121
Short-term operating lease liabilities	129		116
Other current liabilities	101		100
Total current liabilities	1,153		962
Liabilities held for sale	1		—
Deferred liabilities and credits
Deferred income tax liability, net	863		676
Long-term operating lease liabilities	940		931
Other deferred liabilities and credits	541		481
Long-term debt, net	3,424		2,316
Noncontrolling interests with redemption features	10		11
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share	1		1
Capital in excess of par value	2,482		2,468
Treasury shares, at cost	(477)		(479)
Accumulated other comprehensive loss	(4)		(9)
Retained earnings	2,802		2,672
Total TDS shareholders' equity	4,804		4,653
Noncontrolling interests	789		751
Total equity	5,593		5,404
Total liabilities and equity	$	12,525	$	10,781

10

Balance Sheet Highlights

(Unaudited)

	December 31, 2020
	UScellular		TDS Telecom		TDS Corporate & Other		Intercompany Eliminations		TDS Consolidated
(Dollars in millions)
Cash and cash equivalents	$	1,271	$	178	$	170	$	(190)	$	1,429
Licenses, goodwill and other intangible assets	$	2,629	$	761	$	8	$	—	$	3,398
Investment in unconsolidated entities	435		4		45		(7)		477
	$	3,064	$	765	$	53	$	(7)	$	3,875
Property, plant and equipment, net	$	2,466	$	1,408	$	98	$	—	$	3,972
Long-term debt, net:
Current portion	$	2	$	—	$	3	$	—	$	5
Non-current portion	2,489		4		931		—		3,424
	$	2,491	$	4	$	934	$	—	$	3,429

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TDS Telecom Highlights

(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2020		2019		2020 vs. 2019		2020		2019		2020 vs. 2019
(Dollars in millions)
Wireline
Operating revenues
Residential	$	90	$	83	8	%	$	349	$	328	6	%
Commercial	37		40		(8)	%	152		168		(9)	%
Wholesale	46		47		(3)	%	182		186		(2)	%
Total service revenues	173		171		1	%	684		682		–
Equipment and product sales	—		—		(34)	%	1		1		(31)	%
	173		171		1	%	685		683		–
Operating expenses
Cost of services	72		68		5	%	269		263		2	%
Cost of equipment and products	—		—		(55)	%	1		1		(36)	%
Selling, general and administrative expenses	51		50		1	%	199		199		–
Expenses excluding depreciation, amortization and accretion	123		119		3	%	468		463		1	%
Depreciation, amortization and accretion	30		33		(9)	%	124		132		(6)	%
(Gain) loss on asset disposals, net	—		—		N/M		—		(8)		N/M
	154		153		1	%	593		587		1	%
Operating income	$	19	$	18	5	%	$	92	$	96	(4)	%
Cable
Operating revenues
Residential	$	63	$	53	19	%	$	245	$	205	20	%
Commercial	13		11		15	%	47		43		10	%
	76		64		18	%	292		247		18	%
Operating expenses
Cost of services	33		26		24	%	123		105		17	%
Selling, general and administrative expenses	19		17		12	%	72		62		16	%
Expenses excluding depreciation, amortization and accretion	52		44		19	%	195		167		17	%
Depreciation, amortization and accretion	20		17		16	%	78		68		15	%
(Gain) loss on asset disposals, net	—		—		(87)	%	1		1		(26)	%
	72		61		18	%	274		236		16	%
Operating income	$	4	$	3	17	%	$	18	$	11	60	%
Total TDS Telecom operating income	$	23	$	21	6	%	$	110	$	107	3	%

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,
	2020		2019		2020		2019
(Dollars in millions)
Cash flows from operating activities (GAAP)	$	366	$	142	$	1,532	$	1,016
Less: Cash paid for additions to property, plant and equipment	424		326		1,338		957
Free cash flow (Non-GAAP)1	$	(58)	$	(184)	$	194	$	59

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.

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