Notes to Consolidated Financial Statements U.S. Cellular’s most significant investments in unconsolidated entities consist of the following: Useful lives range from four to twenty-five years for cell site-related equipment, ten to twenty years for buildings and leasehold improve- ments, three to eight years for switching-related equipment, three to five years for office furniture and equipment, and ten years for other operating equipment. Based primarily on data furnished to U.S. Cellular by third parties, the following summarizes the combined assets, liabilities and equity, and the combined results of operations of the wireless entities in which  U.S. Cellular’s investments are accounted for by the equity method: Property, plant and equipment in service and under construction, net of accumulated depreciation, consists of: NOTE 8 PROPERTY, PLANT AND EQUIPMENT U.S. Cellular has recorded a loss of $22.0 million as a “Loss on  assets held for sale” (included in operating expenses) representing the difference between the carrying value of the markets to be sold to  AT&T Wireless and the cash to be received in the transaction. The sale is being accounted for in accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets.” T he balance sheet as of December 31, 2003 reflects assets and liabilities of the wireless properties to be sold as assets and liabilities of opera- tions held for sale from the date of the sale agreement until the close  of the transaction. The revenues and expenses of the markets continue to be included in operations until the completion of the sale. The following table summarizes the recorded value of the assets and liabilities of the markets that U.S. Cellular will be transferring. On November 26, 2003, U.S. Cellular announced that it had entered  into a definitive agreement to sell its southern Texas wireless markets to AT&T Wireless for $95 million in cash plus a working capital adjustment, subject to certain closing provisions. The U.S. Cellular markets to be  sold to AT&T Wireless include 25 megahertz metropolitan statistical area and rural service area licenses representing 1.3 million population equivalents, approximately 150 cell sites and 76,000 customers. The transaction is subject to regulatory approvals. The closing of the sale is expected to occur in the first quarter of 2004. Total revenues from the markets to be sold totaled $60.6 million for the year ended December 31, 2003, while operating income totaled $17.1 million. Operating income does not include shared services costs that have been allocated to the markets from the U.S. Cellular corporate office. NOTE 9 OPERATIONS HELD FOR SALE Percentage Ownership December 31, 2003 2002 Cellular investments Los Angeles SMSA Limited Partnership 5.5% 5.5% Raleigh-Durham MSA Limited Partnership 8.0% 8.0% Midwest Wireless Communications, LLC 15.7% 15.7% North Carolina RSA 1 Partnership 50.0% 50.0% Oklahoma City SMSA Limited Partnership 14.6% 14.6% December 31, 2003 2002 (Dollars in thousands) Assets Current $ 225,000 $ 213,000 Due from affiliates 522,000 249,000 Property and other 1,625,000 1,506,000 $2,372,000 $1,968,000 Liabilities and Equity Current liabilities $ 181,000 $ 172,000 Due to affiliates — 3,000 Deferred credits 82,000 85,000 Long-term debt 17,000 21,000 Partners’ capital and shareholders’ equity 2,092,000 1,687,000 $2,372,000 $1,968,000 Year Ended December 31, 2003 2002 2001 (Dollars in thousands) Results of Operations Revenues $2,488,000 $2,162,000 $2,086,000 Operating expenses 1,839,000 1,685,000 1,490,000 Operating income 649,000 477,000 596,000 Other income (expense), net 8,000 17,000 (7,000) Net income $ 657,000 $ 494,000 $ 589,000 December 31, 2003 2002 (Dollars in thousands) Cell site-related equipment $ 1,777,251 $ 1,664,154 Land, buildings and leasehold improvements 621,070 552,087 Switching-related equipment 460,165 399,086 Office furniture and equipment 203,139 183,285 Other operating equipment 127,542 113,975 Work in process 252,010 172,996 Less accumulated depreciation (1,267,293) (1,051,792) $ 2,173,884 $ 2,033,791 54 December 31, 2003 (Dollars in thousands) Current assets $ 5,363 Property , plant and equipment, net 45,710 Other assets 316 Licenses 63,569 Goodwill 7,565 Loss on assets held for sale (22,000) Total assets $100,523 Current liabilities $ 2,189 Non-current liabilities 238 Total liabilities $ 2,427 Net assets to be transferred $ 98,096