Earnings Per Share

3 Months Ended

Mar. 31, 2013

Disclosure Text Block

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 outstanding during the period 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 the weighted average number of Common and Series A Common Shares were as follows:

				Three Months Ended
				March 31,
				2013		2012
(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			$	1,407	$	52,242
Adjustments to compute diluted earnings:
	Noncontrolling interest adjustment				(28)		(345)
	Preferred dividend adjustment				-		12
	Net income attributable to common shareholders of TDS used in diluted earnings per share			$	1,379	$	51,909
Weighted average number of shares used in basic earnings per share:
		Common Shares			101,095		101,534
		Series A Common Shares			7,160		7,119
			Total		108,255		108,653
Effects of dilutive securities:
	Stock options				112		202
	Restricted stock units				326		180
	Preferred shares				-		63
Weighted average number of shares used in diluted earnings per share					108,693		109,098
Basic earnings per share attributable to TDS shareholders				$	0.01	$	0.48
Diluted earnings per share attributable to TDS shareholders				$	0.01	$	0.48

Certain Common Shares issuable upon the exercise of stock options, vesting of restricted stock units or conversion of preferred shares were not included in average diluted shares outstanding for the calculation of Diluted earnings per share attributable to TDS shareholders because their effects were antidilutive. The number of such Common Shares excluded, if any, is shown in the table below.

	Three Months Ended
	March 31,
	2013	2012
(Shares in thousands)
Stock options	6,672	4,301
Preferred shares	61	-