Earnings Per Share

Basic earnings (loss) per share available to TDS common shareholders is computed by dividing Net income (loss) available to TDS common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share available to TDS common shareholders is computed by dividing Net income (loss) 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 the exercise of outstanding stock options and the vesting of performance and restricted stock units.

The amounts used in computing earnings (loss) per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
(Dollars and shares in millions, except per share amounts)
Basic earnings (loss) per share available to TDS common shareholders:
Net income (loss) available to TDS common shareholders used in basic earnings (loss) per share	$	46	$	(181	)	$	119		$	(134	)
Adjustments to compute diluted earnings (loss):
Noncontrolling interest adjustment	—		—			(2		)	—
Net income (loss) available to TDS common shareholders used in diluted earnings (loss) per share	$	46	$	(181	)	$	117		$	(134	)

Weighted average number of shares used in basic earnings (loss) per share:
Common Shares	105		104			105			104
Series A Common Shares	7		7			7			7
Total	112		111			112			111

Effects of dilutive securities	2		—			1			—
Weighted average number of shares used in diluted earnings (loss) per share	114		111			113			111

Basic earnings (loss) per share available to TDS common shareholders	$	0.41	$	(1.64	)	$	1.06		$	(1.21	)

Diluted earnings (loss) per share available to TDS common shareholders	$	0.41	$	(1.64	)	$	1.04		$	(1.21	)

Certain Common Shares issuable upon the exercise of stock options, vesting of performance and restricted stock units or conversion of preferred shares were not included in average diluted shares outstanding for the calculation of Diluted earnings (loss) per share available to TDS common shareholders because their effects were antidilutive. The number of such Common Shares excluded was 3 million and 4 million for the three and nine months ended September 30, 2018, respectively, and 5 million and 6 million for the three and nine months ended September 30, 2017, respectively.