content_image/62554.jpg content_image/62560.jpg content_image/62564.jpg content_image/62565.jpg
<img src='content_image/62554.jpg'>

(1) Stock options and restricted stock convertible into 1,322,132 Common Shares in 2003, 1,753,950 Common Shares in 2002 and 185,580 Common Shares in 2001 were not included in computing Diluted Earnings per Share because their effects were anti-dilutive. 

(2) Convertible debentures convertible into 2,944,347 Common Shares in 2003 and 2,945,256 Common Shares in 2002 were not included in computing Diluted Earnings per Share because their effects were anti-dilutive. 

## NOTE 4 INVESTMENT IN LICENSES AND GOODWILL 

Changes in investment in licenses and goodwill are primarily the result of the acquisition or divestiture of wireless markets by U.S. Cellular. See Note 11 – Acquisitions, Divestitures and Exchanges for the details of the changes in investment in licenses and goodwill. 

A schedule of investment in licenses activity follows: 

<img src='content_image/62560.jpg'>

(1) Includes $42.0 million of License rights from the AT&T Wireless transaction in 2003. 

(2) Upon adoption of SFAS No. 142 on January 1, 2002, U.S. Cellular recorded a $20.9 million impairment loss on intangible assets related to its investment in licenses. The loss was recorded as a cumulative effect of accounting change. In 2003, U.S. Cellular recorded an additional impairment loss of $49.6 million on its investment in licenses in two report- ing units and a $3.5 million loss on impairment of its investment in a non-operating wireless license. 

A schedule of investment in goodwill activity follows: 

<img src='content_image/62564.jpg'>

Pursuant to SFAS No. 142, U.S. Cellular ceased amortization of licenses and goodwill as of January 1, 2002. Net income (loss) and Basic and Diluted earnings per share adjusted to exclude license and goodwill amortization expense, net of tax, recorded in the year ended December 31, 2001, is summarized below, together with the actual amounts of such measures in 2003 and 2002, for comparison purposes. 

<img src='content_image/62565.jpg'>

