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## Notes to Consolidated Financial Statements 

received 35,570,493 shares of VoiceStream common stock valued at $3,899.4 million at closing. TDS recognized a gain of approximately $2,125.8 million, net of $1,515.9 million in taxes, on this transaction. TDS had a basis in Aerial of $287.8 million, including deferred losses of $75.9 million from September 17, 1999 to May 4, 2000. In 2001, the gain on disposal of Aerial was reduced by $24.1 million, or $.41 per share, reflecting adjustments to estimates used during the closing in the calculation of income and other tax liabilities. 

Summarized income statement information relating to discontinued operations, excluding any corporate charges and intercompany interest expense, is as follows. 

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Summarized cash flow statement information relating to discontinued operations is as follows. 

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## 4 Extraordinary Item 

U.S. Cellular retired Liquid Yield Option Notes (“LYONs”) with an aggregate carrying value of $25.4 million and $63.6 million during 2001 and 2000, respectively, for cash totaling $32.0 million and $99.4 million, respectively. These retirements resulted in an extraordinary loss of $5.7 million, net of minority interest of $1.2 million, or $.10 per basic and diluted share, in 2001, and $30.5 million, net of minority interest of $6.4 million, or $.51 per basic and diluted share in 2000. There were no income tax benefits due to the conversion feature associated with these LYONs. 

## 5 Earnings Per Share 

The amounts used in computing Earnings per Share from Continuing Operations and the effect on income and the weighted average number of Common and Series A Common Shares of dilutive potential common stock are as follows. 

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(1) The minority income adjustment reflects the additional minority share of U.S. Cellular’s income computed as if all of U.S. Cellular’s issuable securities were outstanding. 

## Notes to Consolidated Financial Statements 

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(1) Preferred Shares convertible into 239,514 Common Shares in 2001 were not included in computing Diluted Earnings per Share because their effects were antidilutive. 

(2) Stock options convertible into 1,381,041 Common Shares in 2001 were not included in computing Diluted Earnings per Share because their effects were antidilutive. 

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(1) Income from continuing operations and basic and diluted earnings per share were significantly affected by gains and losses from marketable securities and other investments. In 2000, the gain on marketable securities and other investments was offset by income taxes on such gains resulting in a net loss. 

## 6 Marketable Equity Securities 

Information regarding the Company’s marketable equity securities is summarized as follows. 

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Cash proceeds from the exchange of available-for-sale securities totaled $570.0 million in 2001 and $46.6 million in 1999. Gross realized losses from the exchange of available-for- sale securities totaled $548.8 million in 2001 and gross realized gains totaled $327.1 million in 1999. 

The merger of Deutsche Telekom AG and VoiceStream Wireless Corporation was completed in 2001. As a result of the merger, the Company’s 35,837,271 VoiceStream common shares (including 266,778 shares received as a dividend in 2001) were converted into 131,461,861 Deutsche Telekom AG ordinary shares and $570.0 million in cash, and the Company recognized a $644.9 million loss. 

The merger of VeriSign, Inc. and Illuminet Holdings, Inc. was also completed in 2001. As a result of the merger, the Company’s 2,628,748 Illuminet shares (including 138,736 shares acquired through the acquisition of Chorus in 2001) were converted into 2,444,735 VeriSign, Inc. shares, and the Company recognized a $96.1 million gain. 

