Earnings Per Share

9 Months Ended

Sep. 30, 2021

Note 6 Earnings Per Share

Basic earnings per share attributable to TDS common shareholders is computed by dividing Net income attributable to TDS common shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to TDS common shareholders is computed by dividing Net income attributable 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 basic and diluted earnings per share attributable to TDS common shareholders were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars and shares in millions, except per share amounts)
Net income attributable to TDS common shareholders used in basic earnings per share	$	28	$	78	$	105	$	212
Adjustments to compute diluted earnings:
Noncontrolling interest adjustment	(1)		(2)		(2)		(3)
Net income attributable to TDS common shareholders used in diluted earnings per share	$	27	$	76	$	103	$	209

Weighted average number of shares used in basic earnings per share:
Common Shares	108		107		108		107
Series A Common Shares	7		7		7		7
Total	115		114		115		114

Effects of dilutive securities	1		1		1		1
Weighted average number of shares used in diluted earnings per share	116		115		116		115

Basic earnings per share attributable to TDS common shareholders	$	0.24	$	0.68	$	0.91	$	1.85

Diluted earnings per share attributable to TDS common shareholders	$	0.24	$	0.66	$	0.89	$	1.81

Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in weighted 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 was 4 million for both the three and nine months ended September 30, 2021 and 4 million for both the three and nine months ended September 30, 2020.