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In 1999, Vodafone merged with AirTouch Communications, Inc. The Company received 12,945,915 Vodafone AirTouch plc ADRs for its AirTouch Communications, Inc. shares, and $46.6 million of cash, and recognized a $327.1 million gain. 

## 7 Intangible Assets 

## Cellular license costs 

Following is a schedule of activity of cellular license costs. 

<img src='content_image/121444.jpg'>

Accumulated amortization of cellular license costs was $259.9 million and $221.5 million at December 31, 2001 and 2000, respectively. Beginning January 1, 2002, upon implementation of SFAS No. 142, the Company expects to cease the amortization of license costs. 

## Telephone franchise and other costs in excess of the underlying book value of subsidiaries 

Following is a schedule of activity of telephone franchise and other costs in excess of the underlying book value. 

<img src='content_image/121445.jpg'>

Accumulated amortization of excess cost was $57.6 million and $51.4 million at December 31, 2001 and 2000, respectively. Beginning January 1, 2002, upon implementation of SFAS No. 142, the Company will cease the amortization of excess cost. 

## 8 Investments in Unconsolidated Entities 

Following is a schedule of activity of investments in unconsolidated entities. 

<img src='content_image/121449.jpg'>

Investments in unconsolidated entities include goodwill and costs in excess of the underlying book value of certain investments. These costs were amortized from 10 to 40 years. 

The aggregate carrying value, net of accumulated amortization, of investments in unconsolidated entities was $233.7 million at December 31, 2001, of which $156.9 million represented the investment in underlying equity and $76.8 million in unamortized goodwill. Beginning January 1, 2002, upon implementation of SFAS No. 142, the Company will cease the amortization of equity method goodwill. 

The Company’s more significant investments in unconsolidated entities consist of the following. 

<img src='content_image/121446.jpg'>

TDS reduced the carrying value of its investment (including $11.0 million of notes receivable) in TSR Wireless Holdings, LLC by $80.4 million to zero in 2000. The charge was included in the caption Gain (loss) on marketable securities and other investments in the Consolidated Statements of Operations. In December 2000, TSR Wireless filed for Chapter 7 bankruptcy. 

Based primarily on data furnished to the Company by third parties, the following summarizes the unaudited combined assets, liabilities and equity, and the unaudited combined results of operations of the entities for which TDS’s investments are accounted for by the equity method. 

<img src='content_image/121462.jpg'>

## 9 Notes Receivable 

Notes receivable at December 31, 2001 and 2000, reflect primarily loans to Airadigm Communications, Inc. ($52.7 million and $44.1 million, respectively) and Kington Management Corporation ($44.2 million and $37.3 million, respectively). The notes range in length from one to twelve years and bear interest at rates from six to eleven percent. 

The notes have a weighted average interest rate of 8.2% and average life of 8.1 years at December 31, 2001. The carrying amount of Notes receivable approximates their fair value. 

## 10 Property, Plant and Equipment 

## U.S. Cellular 

U.S. Cellular’s property, plant and equipment consists of the following. 

<img src='content_image/121464.jpg'>

Useful lives range from four to twenty-five years for cell site- related equipment, ten to twenty years for buildings and leasehold improvements, three to eight years for switching- related equipment, three to five years for office furniture and equipment, three to seven years for systems development, and ten years for other operating equipment. The provision for depreciation as a percentage of depreciable property was 12.1% in 2001, 13.0% in 2000, and 12.4% in 1999. 

## TDS Telecom 

TDS Telecom’s property, plant and equipment consists of the following. 

<img src='content_image/121463.jpg'>

