Note 12 Business Segment Information UScellular and TDS Telecom are billed for services they receive from TDS, consisting primarily of information processing, accounting and finance, and general management services. Such billings are based on expenses specifically identified to UScellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to UScellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if UScellular and TDS Telecom operated on a stand-alone basis. Financial data for TDS reportable segments for the three and nine month periods ended, or as of September 30, 2020 and September 30, 2019, is as follows. See Note 1  Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of September 30, 2020 UScellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 775 $ 173 $ 74 $ 247 $ 24 $ 1,046 Equipment and product sales 252    26 278 Total operating revenues 1,027 173 74 247 50 1,324 Cost of services (excluding Depreciation, amortization and accretion reported below) 203 69 31 100 18 321 Cost of equipment and products 257    21 278 Selling, general and administrative 335 51 18 69 11 415 Depreciation, amortization and accretion 161 30 20 49 7 217 (Gain) loss on asset disposals, net 6     6 Operating income (loss) 65 23 5 28 (6) 87 Equity in earnings of unconsolidated entities 48     48 Interest and dividend income 2 1  1 1 4 Gain (loss) on investments 3     3 Interest expense (29) 1  1 (15) (43) Income (loss) before income taxes 89 24 5 29 (19) 99 Income tax expense (benefit) 2 4 4 (2) 6 Net income (loss) 85 25 (17) 93 Add back: Depreciation, amortization and accretion 161 30 20 49 7 217 (Gain) loss on asset disposals, net 6     6 Gain (loss) on investments (3)     (3) Interest expense 29 (1)  (1) 15 43 Income tax expense (benefit) 2 4 4 (2) 6 Adjusted EBITDA 3 $ 282 $ 53 $ 25 $ 78 $ 2 $ 362 Investments in unconsolidated entities $ 467 $ 4 $  $ 4 $ 37 $ 508 Total assets $ 9,180 $ 1,539 $ 721 $ 2,250 $ 465 $ 11,895 Capital expenditures $ 216 $ 74 $ 18 $ 92 $ 2 $ 310 TDS Telecom Three Months Ended or as of September 30, 2019 UScellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 774 $ 169 $ 62 $ 231 $ 25 $ 1,030 Equipment and product sales 257    34 291 Total operating revenues 1,031 169 62 231 59 1,321 Cost of services (excluding Depreciation, amortization and accretion reported below) 199 68 27 94 20 313 Cost of equipment and products 266    29 295 Selling, general and administrative 358 52 15 67 14 439 Depreciation, amortization and accretion 181 33 17 50 6 237 (Gain) loss on asset disposals, net 5    1 6 (Gain) loss on license sales and exchanges, net 2     2 Operating income (loss) 20 16 3 20 (11) 29 Equity in earnings of unconsolidated entities 44     44 Interest and dividend income 4 3  3  7 Interest expense (29) 1  1 (14) (42) Income (loss) before income taxes 39 20 4 24 (25) 38 Income tax expense (benefit) 2 15 5 (5) 15 Net income (loss) 24 18 (19) 23 Add back: Depreciation, amortization and accretion 181 33 17 50 6 237 (Gain) loss on asset disposals, net 5    1 6 (Gain) loss on license sales and exchanges, net 2     2 Interest expense 29 (1)  (1) 14 42 Income tax expense (benefit) 2 15 5 (5) 15 Adjusted EBITDA 3 $ 256 $ 52 $ 21 $ 73 $ (4) $ 325 Investments in unconsolidated entities $ 471 $ 4 $  $ 4 $ 36 $ 511 Total assets $ 8,291 $ 1,430 $ 644 $ 2,066 $ 524 $ 10,881 Capital expenditures $ 170 $ 61 $ 20 $ 81 $ 2 $ 253 TDS Telecom Nine Months Ended or as of September 30, 2020 UScellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,290 $ 511 $ 216 $ 727 $ 71 $ 3,088 Equipment and product sales 674 1  1 86 761 Total operating revenues 2,964 512 216 728 157 3,849 Cost of services (excluding Depreciation, amortization and accretion reported below) 580 197 91 287 52 919 Cost of equipment and products 692 1  1 72 765 Selling, general and administrative 994 148 52 200 33 1,227 Depreciation, amortization and accretion 516 94 59 152 17 685 (Gain) loss on asset disposals, net 14  1 1  15 Operating income (loss) 168 73 14 87 (17) 238 Equity in earnings of unconsolidated entities 137    1 138 Interest and dividend income 6 4 1 4 2 12 Gain (loss) on investments 3     3 Interest expense (76) 3  3 (46) (119) Other, net  (1)  (1)  (1) Income (loss) before income taxes 238 79 15 94 (61) 271 Income tax expense (benefit) 2 11 13 (7) 17 Net income (loss) 227 81 (54) 254 Add back: Depreciation, amortization and accretion 516 94 59 152 17 685 (Gain) loss on asset disposals, net 14  1 1  15 Gain (loss) on investments (3)     (3) Interest expense 76 (3)  (3) 46 119 Income tax expense (benefit) 2 11 13 (7) 17 Adjusted EBITDA 3 $ 841 $ 169 $ 74 $ 243 $ 3 $ 1,087 Capital expenditures $ 621 $ 171 $ 49 $ 221 $ 7 $ 849 TDS Telecom Nine Months Ended or as of September 30, 2019 UScellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,272 $ 512 $ 183 $ 694 $ 72 $ 3,038 Equipment and product sales 698 1  1 103 802 Total operating revenues 2,970 512 184 695 175 3,840 Cost of services (excluding Depreciation, amortization and accretion reported below) 568 195 79 274 58 900 Cost of equipment and products 724 1  1 83 808 Selling, general and administrative 1,027 148 44 193 40 1,260 Depreciation, amortization and accretion 524 99 51 150 23 697 (Gain) loss on asset disposals, net 13 (8) 1 (7) (1) 5 (Gain) loss on sale of business and other exit costs, net (1)     (1) Operating income (loss) 115 78 8 86 (30) 171 Equity in earnings of unconsolidated entities 128    1 129 Interest and dividend income 14 8 1 9 1 24 Interest expense (87) 2  2 (43) (128) Income (loss) before income taxes 170 88 9 97 (71) 196 Income tax expense (benefit) 2 55 23 (14) 64 Net income (loss) 115 74 (57) 132 Add back: Depreciation, amortization and accretion 524 99 51 150 23 697 (Gain) loss on asset disposals, net 13 (8) 1 (7) (1) 5 (Gain) loss on sale of business and other exit costs, net (1)     (1) Interest expense 87 (2)  (2) 43 128 Income tax expense (benefit) 2 55 23 (14) 64 Adjusted EBITDA 3 $ 793 $ 177 $ 61 $ 238 $ (6) $ 1,025 Capital expenditures $ 467 $ 145 $ 48 $ 193 $ 4 $ 664 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.