US Cellular 2009 Annual Report Download - page 65

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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 6 VARIABLE INTEREST ENTITIES (VIEs) (Continued)
loans, are recorded as a component of Net income attributable to noncontrolling interests, net of tax, in
U.S. Cellular’s Consolidated Statements of Operations.
See Note 14—Commitments and Contingencies for additional information related to the participation of
Carroll Wireless, Barat Wireless and King Street Wireless in Auction 58, Auction 66 and Auction 73,
respectively.
These VIEs are in the process of developing long-term business and financing plans. These entities were
formed to participate in FCC auctions of wireless spectrum and to fund, establish, and provide wireless
service with respect to any FCC licenses won in the auctions. As such, these entities have risks similar to
those described in the ‘‘Risk Factors’’ in U.S. Cellular’s Annual Report on Form 10-K.
NOTE 7 EARNINGS PER SHARE
Basic earnings per share is computed by dividing Net income attributable to U.S. Cellular by the
weighted average number of common shares outstanding during the period. Diluted earnings per share
is computed by dividing Net income attributable to U.S. Cellular by the weighted average number of
common shares outstanding during the period adjusted to include the effects of potentially dilutive
securities. Potentially dilutive securities 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 and Series A Common Share and the effect of
potentially dilutive securities on the weighted average number of Common and Series A Common Shares
are as follows:
Year ended December 31, 2009 2008 2007
(Dollars and shares in thousands, except earnings per share)
Net income attributable to U.S. Cellular shareholders .............. $216,008 $32,990 $314,734
Weighted average number of shares used in basic earnings per share . 86,946 87,457 87,730
Effect of dilutive securities:
Stock options(1) ...................................... 21 150 569
Restricted stock units(2) ................................. 201 147 182
Weighted average number of shares used in diluted earnings per share . 87,168 87,754 88,481
Basic earnings per share attributable to U.S. Cellular shareholders .... $ 2.48 $ 0.38 $ 3.59
Diluted earnings per share attributable to U.S. Cellular shareholders . . . $ 2.48 $ 0.38 $ 3.56
(1) Stock options exercisable into 2,045,461 Common Shares in 2009, 1,102,551 Common Shares in
2008 and 2,506 Common Shares in 2007 were not included in computing Diluted earnings per share
because their effects were antidilutive.
(2) Restricted stock units exercisable into 192,958 Common Shares in 2009 and 176,023 in 2008 were
not included in computing Diluted earnings per share because their effects were antidilutive.
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