Earnings Per Share

6 Months Ended

Jun. 30, 2011

Notes To The Financial Statements [Abstract]

Earnings Per Share

4. Earnings Per Share

Basic earnings per share attributable to TDS shareholders is computed by dividing Net income available to common shareholders of TDS by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to TDS shareholders is computed by dividing Net income available to common shareholders of TDS by the weighted average number of common shares, both adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon exercise of outstanding stock options and the vesting of restricted stock units.

The amounts used in computing earnings per share and the effects of potentially dilutive securities on income and the weighted average number of Common, Special Common and Series A Common Shares are as follows:

				Three Months Ended						Six Months Ended
				June 30,						June 30,
				2011			2010			2011			2010
(Dollars and shares in thousands, except per share amounts)
Basic earnings per share attributable to TDS shareholders:
	Net income available to common shareholders of TDS
		used in basic earnings per share		$	91,051		$	40,275		$	132,660		$	88,676
Adjustments to compute diluted earnings:
	Noncontrolling interest (1)				(342	)		(138	)		(570	)		(314	)
	Preferred dividend (2)				12			12			25			25
	Net income attributable to common shareholders of
		TDS used in diluted earnings per share		$	90,721		$	40,149		$	132,115		$	88,387
Weighted average number of shares used in basic
	earnings per share:
		Common Shares			49,964			49,872			49,955			49,862
		Special Common Shares			47,027			49,150			47,296			49,371
		Series A Common Shares			6,518			6,498			6,514			6,495
			Total		103,509			105,520			103,765			105,728
Effects of dilutive securities:
	Stock options				289			151			286			122
	Restricted stock units				209			188			195			173
	Preferred shares				55			48			55			48
Weighted average number of shares used in diluted
	earnings per share				104,062			105,907			104,301			106,071
Basic earnings per share attributable to TDS shareholders				$	0.88		$	0.38		$	1.28		$	0.84
Diluted earnings per share attributable to TDS shareholders				$	0.87		$	0.38		$	1.27		$	0.83

• The noncontrolling income adjustment reflects the additional noncontrolling share of U.S. Cellular's income computed as if all of U.S. Cellular's issuable securities were outstanding.
• The preferred dividend adjustment reflects the dividend reduction related to preferred securities that were dilutive, and therefore treated as if converted for shares.

Certain Common Shares and Special Common Shares issuable upon the exercise of Stock options, vesting of Restricted stock units or conversion of Convertible preferred shares were not included in average diluted shares outstanding for the calculation of Diluted earnings per share because their effects were antidilutive. The number of such Common Shares and Special Common Shares excluded is shown in the table below.

		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2011	2010	2011	2010
(Shares in thousands)
Stock options
	Common Shares	363	606	387	634
	Special Common Shares	3,288	3,619	3,043	3,377
Restricted stock units
	Common Shares	—	—	—	—
	Special Common Shares	127	65	64	33
Convertible preferred shares
	Common Shares	—	—	—	—