Notes to Consolidated Financial Statements NOTE 7 INVESTMENTS IN UNCONSOLIDATED ENTITIES NOTE 5 CUSTOMER LISTS The customer lists, intangible assets from the acquisition of wireless properties, are being amortized based on average customer retention periods using the declining balance method. Amortization expense was $15.6 million for the year ended December 31, 2003 and $6.6 million for the year ended December 31, 2002. Amortization expense for the years 2004 through 2008 is expected to be $9.5 million, $5.8 million, $3.5 million, $2.1 million and $1.3 million, respectively. Investments in unconsolidated entities consist of amounts invested in wireless entities in which U.S. Cellular holds a minority interest. These investments are accounted for using either the equity or cost method, as shown in the following table: Information regarding U.S. Cellular’s marketable equity securities  is summarized as follows: As of December 31, 2003, U.S. Cellular followed the equity method  of accounting for minority interests in 26 markets where U.S. Cellular’s ownership interest is 20% or greater for corporations or greater than 3% to 5% for partnerships and limited liability companies. This method recognizes, on a current basis, U.S. Cellular’s proportionate share of  the income and losses accruing to it under the terms of the respective partnership and shareholder agreements. Income and losses from the entities are reflected in the consolidated statements of operations on a pretax basis as Investment income. Investment income totaled $52.1 million, $42.1 million and $41.9 million in 2003, 2002 and 2001, respec- tively. As of December 31, 2003, U.S. Cellular followed the cost method of accounting for its investments in 6 markets where U.S. Cellular’s ownership interest is less than 20% for corporations or less than 3%  for partnerships and limited liability companies, or where U.S. Cellular does not have the ability to exercise significant influence. U.S. Cellular and its subsidiaries hold a substantial amount of mar- ketable equity securities that are publicly traded and can have volatile movements in share prices. U.S. Cellular and its subsidiaries do not make direct investments in publicly traded companies and all of these interests were acquired as a result of sales, trades or reorganizations of other assets. The investment in Vodafone resulted from certain sales or trades of non-strategic cellular investments to or settlements with AirTouch Communications in exchange for stock of AirTouch, which was then acquired by Vodafone for American Depositary Receipts represent- ing Vodafone stock. The investment in Rural Cellular Corporation is the result of a consolidation of several cellular partnerships in which U.S. Cellular subsidiaries held interest in Rural Cellular, and the distribution of Rural Cellular stock in exchange for these interests. The market values of the marketable equity securities may fall below  the accounting cost basis of such securities. If management determines the decline in value of the marketable equity securities to be other than temporary, the unrealized loss included in Accumulated other compre- hensive income is recognized and recorded as a loss in the statements  of operations. Investments in unconsolidated entities include goodwill and costs  in excess of the underlying book value of certain investments. At December 31, 2003, $153.7 million represented the investment in under- lying equity and $16.9 million represented goodwill. At December 31, 2002, $136.4 million represented the investment in underlying equity and $25.0 million represented goodwill. In 2001, goodwill related to investments for which U.S. Cellular follows the equity method of accounting were being amortized over 40 years. U.S. Cellular adopted SFAS No. 142 on January 1, 2002, and no longer amortizes its goodwill related to equity method investments. Amortization expense related  to these investments amounted to $0.7 million in 2001. During 2003, U.S. Cellular reduced the carrying value of one of its cost method investments by $1.7 million, to its underlying equity value. This charge was included in Loss on marketable equity securities and other investments on the statements of operations. 53 NOTE 6 MARKETABLE EQUITY SECURITIES December 31, 2003 2002 (Dollars in thousands) Equity method investments: Capital contributions, loans and advances $ 27,032 $ 15,647 Goodwill 16,389 23,397 Cumulative share of income 360,728 313,827 Cumulative share of distributions (235,953) (195,626) 168,196 157,245 Cost method investments: Capital contributions, net of  partnership distributions and impairments 1,888 2,603 Goodwill 485 1,603 2,373 4,206 Total investments in unconsolidated entities $ 170,569 $ 161,451 December 31, 2003 2002 (Dollars in thousands) Vodafone Group Plc 10,245,370 American Depositary Receipts $256,544 $185,646 Rural Cellular Corporation  370,882 Common Shares 2,949 315 Other 695 — Aggregate Fair Value 260,188 185,961 Accounting Cost, as adjusted 160,161 160,362 Gross Unrealized Holding Gains (Losses) 100,027 25,599 Tax Effect (39,518) (10,111) Net Unrealized Holding Gains (Losses) 60,509 15,488 Derivative Accounting, net of tax (33,720) (5,181) Accumulated Other Comprehensive Income $ 26,789 $ 10,307