Financial data for UScellular's reportable segments for the three months ended March 31, 2025 and 2024, is as follows. | | | | | | | | | | | | | | | Three Months Ended March 31, 2025 | Wireless | Towers | Total | | (Dollars in millions) | | | | | Revenues from external customers | $ | 864 | | $ | 27 | | $ | 891 | | | Intersegment revenues | — | | 34 | | 34 | | | 864 | | 61 | | 925 | | | Reconciliation of revenue: | | | | | Elimination of intersegment revenues | | | (34) | | | Total operating revenues | | | $ | 891 | | | | | | Less1: | | | | | Cost of services (excluding Depreciation, amortization and accretion reported below) | 191 | | 19 | | | | Cost of equipment and products | 178 | | — | | | | Selling, general and administrative | 322 | | 10 | | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | (9) | | (1) | | | | Segment Adjusted EBITDA (Non-GAAP) | $ | 182 | | $ | 33 | | $ | 215 | | | | | | | Reconciliation of Segment Adjusted EBITDA to Income before income taxes: | | | | | Depreciation, amortization and accretion | | | (163) | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | | | (10) | | | | | | | Loss on asset disposals, net | | | (2) | | | Gain on license sales and exchanges, net | | | 1 | | | Equity earnings of unconsolidated entities | | | 36 | | | Interest and dividend income | | | 3 | | | Interest expense | | | (40) | | | Income before income taxes | | | $ | 40 | |
| | | | | | | | | | | | | | | | Other segment disclosures | | | | | | Three Months Ended or as of March 31, 2025 | Wireless | Towers | Segment Total | UScellular | | Depreciation, amortization and accretion | $ | (152) | | $ | (11) | | $ | (163) | | | | | | | | | Loss on asset disposals, net | (2) | | — | | (2) | | | | Gain on license sales and exchanges, net | 1 | | — | | 1 | | | | | | | | Investments in unconsolidated entities2 | | | | $ | 479 | | Total assets3 | | | | $ | 10,365 | | | Capital expenditures | $ | 51 | | $ | 2 | | $ | 53 | | |
| | | | | | | | | | | | | | | Three Months Ended March 31, 2024 | Wireless | Towers | Total | | (Dollars in millions) | | | | | Revenues from external customers | $ | 925 | | $ | 25 | | $ | 950 | | | Intersegment revenues | — | | 33 | | 33 | | | 925 | | 58 | | 983 | | | Reconciliation of revenue: | | | | | Elimination of intersegment revenues | | | (33) | | | Total operating revenues | | | $ | 950 | | | | | | Less1: | | | | | Cost of services (excluding Depreciation, amortization and accretion reported below) | 197 | | 18 | | | | Cost of equipment and products | 216 | | — | | | | Selling, general and administrative | 324 | | 7 | | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | (7) | | — | | | | Segment Adjusted EBITDA (Non-GAAP) | $ | 195 | | $ | 33 | | $ | 228 | | | | | | | Reconciliation of Segment Adjusted EBITDA to Income before income taxes: | | | | | Depreciation, amortization and accretion | | | (165) | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | | | (7) | | | | | | | Loss on asset disposals, net | | | (6) | | | Gain on license sales and exchanges, net | | | 1 | | | Equity earnings of unconsolidated entities | | | 42 | | | Interest and dividend income | | | 2 | | | Interest expense | | | (43) | | | Income before income taxes | | | $ | 52 | |
| | | | | | | | | | | | | | | | Other segment disclosures | | | | | | Three Months Ended or as of March 31, 2024 | Wireless | Towers | Segment Total | UScellular | | Depreciation, amortization and accretion | $ | (154) | | $ | (11) | | $ | (165) | | | | | | | | | Loss on asset disposals, net | (6) | | — | | (6) | | | | Gain on license sales and exchanges, net | 1 | | — | | 1 | | | | | | | | Investments in unconsolidated entities2 | | | | $ | 482 | | Total assets3 | | | | $ | 10,704 | | | Capital expenditures | $ | 127 | | $ | 4 | | $ | 131 | | |
1The significant segment expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. 2This item is not included in the evaluation of operating performance of the Wireless and Towers segments, and therefore is reported for "UScellular". 3Assets are not provided at the individual segment level for Wireless and Towers, and therefore are reported for "UScellular". The UScellular segments operate under a common capital structure, and management has historically considered its assets collectively as part of a combined wireless network.
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