Earnings Per Share

3 Months Ended

Mar. 31, 2016

Disclosure Text Block

Earnings per Share

Note 4Earnings Per Share

Basic earnings per share available to TDS common shareholders is computed by dividing Net income available to TDS common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share available to TDS common shareholders is computed by dividing Net income available to TDS common shareholders 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 common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows:

				Three Months Ended
				March 31,
				2016		2015
(Dollars and shares in millions, except per share amounts)
Basic earnings per share available to TDS common shareholders:
	Net income available to TDS common shareholders     used in basic earnings per share			$	8	$	146
Adjustments to compute diluted earnings:
	Noncontrolling interest adjustment				–		(1)
	Net income available to TDS common shareholders
		used in diluted earnings per share		$	8	$	145
Weighted average number of shares used in basic
	earnings per share:
		Common Shares			102		101
		Series A Common Shares			7		7
			Total		109		108
Effects of dilutive securities1					1		1
Weighted average number of shares used in diluted
	earnings per share				110		109
Basic earnings per share available to TDS common
	shareholders			$	0.07	$	1.35
Diluted earnings per share available to TDS common
	shareholders			$	0.07	$	1.33
	1		Includes effects of stock options, restricted stock units and preferred shares.

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 available to TDS common shareholders because their effects were antidilutive.  The number of such Common Shares excluded was7 million shares and 6 million shares for the three months ended March 31, 2016 and 2015, respectively.