Notes to Consolidated Financial Statements expected cash flows from the forecasted transactions. No gains or losses related to ineffectiveness of cash flow hedges were recognized  in earnings for the years ended December 31, 2003 and 2002. Management has evaluated the expected timing of the hedged fore- casted transactions to deliver the underlying shares to settle the forward contracts, and believes that these forecasted transactions are probable  of occurring in the periods specified in the related hedge documentation or within an additional two-month period of time thereafter. U.S. Cellular reported a derivative liability of $55.7 million and  $8.7 million at December 31, 2003 and 2002, respectively. These amounts are included in the balance sheet caption Deferred Liabilities and Credits. NOTE 16 MINORITY INTEREST IN SUBSIDIARIES NOTE 17 COMMON SHAREHOLDERS’ EQUITY Employee Benefit Plans Tax-Deferred Savings Plan Stock-based Compensation Plans Under SFAS No. 150 “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity,” certain minority interests in consolidated entities with finite lives may meet the standard’s defini- tion of a mandatorily redeemable financial instrument and thus require reclassification as liabilities and remeasurement at the estimated amount of cash that would be due and payable to settle such minority interests under the applicable entity’s organization agreement, assuming an orderly liquidation of the finite-lived entity, net of estimated liquida- tion costs (the “settlement value”). U.S. Cellular’s consolidated financial statements include such minority interests that meet the standard’s definition of mandatorily redeemable financial instruments. These mandatorily redeemable minority interests represent interests held by third parties in consolidated partnerships and limited liability companies (“LLCs”), where the terms of the underlying partnership or LLC agree- ment provide for a defined termination date at which time the assets  of the subsidiary are to be sold, the liabilities are to be extinguished and the remaining net proceeds are to be distributed to the minority interest holders and U.S. Cellular in accordance with the respective partnership and LLC agreements. The termination dates of U.S. Cellular’s mandatorily redeemable minority interests range from 2042 to 2100. On November 7, 2003, the FASB issued FASB Staff Position (“FSP”)  No. FAS 150-3, “Effective Date, Disclosures, and Transition for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests” under FASB Statement No. 150 “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity.” The FSP indefinitely deferred the classification and measurement provisions of SFAS No. 150 related to the mandatorily redeemable minority interests associated with finite-lived subsidiaries, but retained the related disclo- sure provisions. The settlement value of U.S. Cellular’s mandatorily redeemable minority interests is estimated to be $104.7 million at December 31, 2003. This represents the estimated amount of cash that would be due and payable to settle minority interests assuming an orderly liquidation of the finite-lived consolidated partnerships and LLCs on December 31, 2003, net of estimated liquidation costs. This amount is being disclosed pursuant to the requirements of FSP FAS 150-3; U.S. Cellular has no current plans or intentions to liquidate any of  U.S. Cellular accounts for stock options, restricted stock awards and employee stock purchase plans under APB Opinion No. 25. No compen- sation costs have been recognized for the stock option and employee stock purchase plans. Compensation costs were recognized for restricted stock awards as expenses in the statements of operations. A summary of the status of U.S. Cellular’s stock option plans at December 31, 2003, 2002 and 2001 and changes during the years  then ended is presented in the table and narrative as follows: U.S. Cellular has reserved 67,215 Common Shares for issuance under the TDS Tax-Deferred Savings Plan, a qualified profit-sharing plan pur- suant to Sections 401(a) and 401(k) of the Internal Revenue Code. Participating employees have the option of investing their contributions in a U.S. Cellular Common Share fund, a TDS Common Share fund, or seven nonaffiliated funds. The following table summarizes Common Shares issued, including reissued Treasury Shares, for the employee benefit plans described  as follows: The FASB plans to reconsider certain implementation issues and perhaps the classification or measurement guidance for mandatorily redeemable minority interests during the deferral period. The outcome of their deliberations cannot be determined at this point. Accordingly, it is possible that the FASB could require the recognition and measurement of mandatorily redeemable minority interests at their settlement value at a later date. the related partnerships or LLCs prior to their scheduled termination dates. The corresponding carrying value of the minority interests in finite-lived consolidated partnerships and LLCs at December 31, 2003  is $35.2 million, and is included in the balance sheet caption Minority Interest. The excess of the aggregate settlement value over the aggre- gate carrying value of the mandatorily redeemable minority interests  of $69.5 million is primarily due to the unrecognized appreciation  of the minority interest holders’ share of the underlying net assets in the consolidated partnerships and LLCs. Neither the minority interest holders’ share, nor U.S. Cellular’s share, of the appreciation of the  underlying net assets of these subsidiaries is reflected in the consoli- dated financial statements under GAAP. The estimate of settlement value was based on certain factors and assumptions. A change in those factors and assumptions could result in a materially larger or smaller settlement amount. 59 Year Ended December 31, 2003 2002 Employee stock options and awards 13,917 42,207 Employee Stock Purchase Plan 11,437 26,222 25,354 68,429