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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
  ý   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
  For the quarterly period ended                        March 31, 2003                                              

OR
  o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
  For the transition period from                                                to                                                     

Commission file number 1-9712

UNITED STATES CELLULAR CORPORATION

(Exact name of registrant as specified in its charter)

  Delaware   62-1147325  
 
 
 
  (State or other jurisdiction of
incorporation or organization) 		  (I.R.S. Employer Identification No.)  

8410 West Bryn Mawr, Suite 700, Chicago, Illinois 60631
(Address of principal executive offices)   (Zip Code)

Registrant's Telephone number, including area code: (773) 399-8900

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days.
                                                                                 Yes ý      No  o
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest
practicable date.
  Class   Outstanding at April 30, 2003  
 
 
 
  Common Shares, $1 par value
Series A Common Shares, $1 par value		   53,125,817 Shares
33,005,877 Shares		  


UNITED STATES CELLULAR CORPORATION
1ST QUARTER REPORT ON FORM 10-Q
INDEX
Page No.
Part I     Financial Information  
   
       Item 1. Financial Statements
   
                 Consolidated Statements of Operations -
                     Three Months Ended March 31, 2003 and 2002 3
   
                 Consolidated Statements of Cash Flows -
                     Three Months Ended March 31, 2003 and 2002 4
   
                 Consolidated Balance Sheets -
                     March 31, 2003 and December 31, 2002 5-6
   
                 Notes to Consolidated Financial Statements 7-14
   
       Item 2. Management's Discussion and Analysis of
                     Results of Operations and Financial Condition  
   
                 Three Months Ended March 31, 2003 and 2002 15-22
                 Financial Resources 22-24
                 Liquidity 24-26
                 Application of Critical Accounting Policies 26-29
                 Certain Relationships and Related Transactions 29
                 Safe Harbor Cautionary Statement 30
   
       Item 3. Quantitative and Qualitative Disclosures About Market Risk 31-32
   
       Item 4. Controls and Procedures 32
   
Part II     Other Information  
   
       Item 1. Legal Proceedings 33
   
       Item 6. Exhibits and Reports on Form 8-K 33
   
Signatures 34
   
Certifications 35-36

PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
UNITED STATES CELLULAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

Three Months Ended
March 31,
2003
2002
(As Restated)
(Dollars in thousands,
except per share amounts)
OPERATING REVENUES            
  Service   $ 564,601   $ 461,113  
  Equipment sales    31,313    17,307  
    Total Operating Revenues    595,914    478,420  
OPERATING EXPENSES  
  System operations    137,965    107,921  
  Marketing and selling    108,921    79,226  
  Cost of equipment sold    64,765    30,367  
  General and administrative    157,449    108,478  
  Depreciation    95,872    65,977  
  Amortization of deferred charges and customer lists    13,631    6,775  
  Loss on assets held for sale    23,500    --  
    Total Operating Expenses    602,103    398,744  
OPERATING INCOME (LOSS)    (6,189 )  79,676  
INVESTMENT AND OTHER INCOME  
  Investment income    12,378    10,461  
  Interest and dividend income    570    1,037  
  Other income (expense), net    (309 )  357  
  Interest (expense)    (15,454 )  (9,030 )
  (Loss) on investments    (3,500 )  --  
    Total Investment and Other Income (Expense)    (6,315 )  2,825  
INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST    (12,504 )  82,501  
Income tax expense (benefit)    (1,118 )  35,675  
INCOME (LOSS) BEFORE MINORITY INTEREST    (11,386 )  46,826  
Minority share of income    (3,257 )  (2,433 )
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE    (14,643 )  44,393  
   Cumulative effect of accounting change, net of tax    --    4,097  
NET INCOME (LOSS)   $ (14,643 ) $ 48,490  
 
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING (000s)    86,121    86,053  
BASIC EARNINGS (LOSS) PER SHARE (Note 6)  
    Income (Loss) Before Cumulative Effect of Accounting Change   $ (0.17 ) $ 0.52  
    Cumulative Effect of Accounting Change    --    0.04  
    Net Income (Loss)   $ (0.17 ) $ 0.56  
   
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (000s)    86,121    89,187  
DILUTED EARNINGS (LOSS) PER SHARE (Note 6)  
    Income (Loss) Before Cumulative Effect of Accounting Change   $ (0.17 ) $ 0.51  
    Cumulative Effect of Accounting Change    -    0.05  
    Net Income (Loss)   $ (0.17 ) $ 0.56  

The accompanying notes to consolidated financial statements
are an integral part of these statements.


-3-

UNITED STATES CELLULAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited


Three Months Ended
March 31,
2003
2002
(As Restated)
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES            
  Net income (loss)   $ (14,643 ) $ 48,490  
  Add (Deduct) adjustments to reconcile net income (loss)  
    to net cash provided by operating activities  
      Depreciation and amortization    109,503    72,752  
      Deferred income tax provision    (1,599 )  9,778  
      Investment income    (12,378 )  (10,461 )
      Minority share of income    3,257    2,433  
      Cumulative effect of accounting change    --    (4,097 )
      Loss on assets held for sale    23,500    --  
      Loss on investments    3,500    --  
      Other noncash expense    2,813    2,734  
  Changes in assets and liabilities  
      Change in accounts receivable    57,527    26,939  
      Change in inventory    (22,057 )  23,421  
      Change in accounts payable    (53,819 )  (32,672 )
      Change in accrued interest    (2,266 )  (4,353 )
      Change in accrued taxes    12,703    26,869  
      Change in customer deposits and deferred revenues    6,783    3,949  
      Change in other assets and liabilities    (10,919 )  6,449  
     101,905    172,231  
CASH FLOWS FROM INVESTING ACTIVITIES  
  Additions to property, plant and equipment    (138,837 )  (90,852 )
  System development costs    (2,089 )  (9,223 )
  Acquisitions, excluding cash acquired    -    (17,050 )
  Distributions from unconsolidated entities    13,615    3,878  
  Other investing activities    (2,744 )  (1,263 )
     (130,055 )  (114,510 )
CASH FLOWS FROM FINANCING ACTIVITIES  
  Increase in notes payable    72,000    --  
  Repayment of notes payable    --    (31,000 )
  Repurchase of long-term debt    (40,680 )  --  
  Capital (distributions) to minority partners    (316 )  (2,653 )
  Other financing activities    170    227  
     31,174    (33,426 )
NET INCREASE IN CASH AND CASH EQUIVALENTS    3,024    24,295  
 
CASH AND CASH EQUIVALENTS-  
  Beginning of period    14,864    28,941  
  End of period   $ 17,888   $ 53,236  

The accompanying notes to consolidated financial statements
are an integral part of these statements.

-4-

UNITED STATES CELLULAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS

(Unaudited)

March 31,
2003
December 31,
2002
(Dollars in thousands)
CURRENT ASSETS            
Cash and cash equivalents  
    General funds   $ 17,676   $ 14,155  
    Affiliated cash equivalents    212    709  
     17,888    14,864  
  Accounts Receivable  
    Customers, less allowance of $17,591 and $17,866, respectively    175,475    220,430  
    Roaming    38,494    53,545  
    Other    31,936    41,276  
  Inventory    76,563    55,490  
  Prepaid expenses    21,897    19,749  
  Prepaid income taxes    17,660    26,610  
  Collateral investment pledged (Note 7)    32,200    --  
  Other current assets    21,586    21,309  
     433,699    453,273  
INVESTMENTS  
  Licenses    979,760    1,038,556  
  Goodwill    546,702    643,629  
  Customer lists, net of accumulated amortization of $11,055 and $6,567,  
    respectively    35,599    40,087  
  Marketable equity securities    156,394    185,961  
  Marketable equity securities - loaned    30,610    --  
  Investments in unconsolidated entities    161,708    161,451  
  Notes and interest receivable - long-term    6,568    7,287  
     1,917,341    2,076,971  
PROPERTY, PLANT AND EQUIPMENT  
  In service and under construction    3,074,844    3,085,583  
  Less accumulated depreciation    1,083,890    1,051,792  
     1,990,954    2,033,791  
DEFERRED CHARGES  
  System development costs, net of accumulated amortization of  
      $95,164 and $89,320, respectively    108,892    114,642
             
  Other, net of accumulated amortization of $5,363 and $5,023,  
    respectively    20,704    21,164  
     129,596    135,806  
ASSETS OF OPERATIONS HELD FOR SALE    226,422    --  
  Total Assets   $ 4,698,012   $ 4,699,841  


The accompanying notes to consolidated financial statements
are an integral part of these statements.


-5-

UNITED STATES CELLULAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY

(Unaudited)

March 31,
2003
December 31,
2002
(Dollars in thousands)
CURRENT LIABILITIES            
  9% senior notes   $ --   $ 45,200  
  Notes payable    532,000    460,000  
  Accounts payable  
    Affiliates    6,436    4,958  
    Trade    242,275    301,929  
  Customer deposits and deferred revenues    86,676    82,639  
  Accrued interest    4,903    9,295  
  Accrued taxes    27,814    24,401  
  Accrued compensation    22,066    30,279  
  Collateral loan payable (Note 7)