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## Assets Acquired and Liabilities Assumed 

In conjunction with these acquisitions and exchanges, the following assets were acquired and liabilities assumed/(transferred): 

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## Pro Forma Operations 

Assuming the exchanges and acquisitions accounted for as purchases during the period January 1, 2002 to December 31, 2003, had taken place on January 1, 2002; and the acquisitions during the period January 1, 2001 to December 31, 2001 had taken place on January 1, 2001, unau- dited pro forma results of operations would have been as follows: 

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## NOTE 12 LOSS ON MARKETABLE EQUITY SECURITIES AND OTHER INVESTMENTS 

In 2003, U.S. Cellular recorded a license cost impairment loss of $3.5 million related to the investment in a non-operating market in Florida that remained with U.S. Cellular upon completion of the exchange with AT&T Wireless. See Note 11 – Acquisitions, Divestitures and Exchanges for further information regarding the exchange transaction with AT&T Wireless. 

In 2003, U.S. Cellular reduced the carrying value of one of its cost method investments by $1.7 million to its underlying equity value based on a cash flow analysis. Both charges were included in Loss on 

marketable equity securities and other investments on the statements of operations. 

In 2002, management determined that a decline in the value of mar- ketable equity securities relative to their respective accounting cost basis was other than temporary and charged an aggregate $244.7 million loss to the statements of operations and reduced the accounting cost basis of such marketable equity securities by a corresponding amount. 

U.S. Cellular had certain notes receivable from Kington Management Corporation (“Kington”). The notes related to the purchase by Kington of certain U.S. Cellular minority interests in 2000. The values of the notes were directly related to the values of the minority cellular market interests. During 2002, management reviewed the fair market value of the cellular interests, including a third party fair value analysis, and concluded that the notes receivable were impaired, and reduced the carrying value of the notes by $34.2 million. Subsequent to this review, Kington decided to withdraw from the partnership effective January 1, 2003. Upon withdrawal, the withdrawing partner is entitled to receive its partner’s capital account in cash totaling $7.8 million. An additional loss of $3.9 million was recorded to reduce the carrying value of the receivable to the estimated partner capital amount. 

U.S. Cellular recorded additional losses in 2002 of $8.4 million related to the withdrawal from a partnership in which it had owned an investment interest and $4.2 million related to the reduction in value of a land purchase option. 

## NOTE 13 NOTES PAYABLE 

On December 19, 2003, U.S. Cellular amended its $325 million revolving credit facility with a group of banks to increase the size of the facility to $700 million. At December 31, 2003, $0.2 million of letters of credit were outstanding against this facility leaving $699.8 million available for use. The terms of the credit facility provide for borrowings with interest at the London InterBank Offered Rate (“LIBOR”) rate plus a margin percentage based on U.S. Cellular’s credit rating. At December 31, 2003, the margin percentage was 55 basis points (for a rate of 1.67% based on the one month LIBOR rate at December 31, 2003). Interest and principal are due the last day of the borrowing period, as selected by U.S. Cellular, of either seven days or one, two, three or six months. U.S. Cellular pays facility and administration fees at an aggregate annual rate of 0.21% of the total facility. These payments totaled $0.7 million in 2003 and $0.5 million in 2002. The credit facility expires in June 2007. 

At December 31, 2002, and up until December 23, 2003, U.S. Cellular had a $500 million revolving credit facility with a group of banks. This credit facility was terminated on December 23, 2003 in connection with the amendment of U.S. Cellular’s $325 million credit facility to $700 million. The terms of the revolving credit facility provided for borrowings with interest at the LIBOR plus a margin percentage based on U.S. Cellular’s credit rating. Interest and principal were due the last day of the borrowing period, as selected by U.S. Cellular, of either seven days or one, two, three or six months. U.S. Cellular paid facility and administration fees at an aggregated annual rate of 0.10% of the total 

