US Cellular 2014 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2014 US Cellular annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 5 EARNINGS PER SHARE (Continued)
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:
Year ended December 31, 2014 2013 2012
(Dollars and shares in thousands, except earnings per share)
Net income (loss) attributable to U.S. Cellular shareholders ......... $(42,812) $140,038 $111,006
Weighted average number of shares used in basic earnings (loss) per
share .............................................. 84,213 83,968 84,645
Effect of dilutive securities:
Stock options(1) ...................................... — 211 184
Restricted stock units(1) ................................ — 551 401
Weighted average number of shares used in diluted earnings (loss)
per share ........................................... 84,213 84,730 85,230
Basic earnings (loss) per share attributable to U.S. Cellular
shareholders ......................................... $ (0.51) $ 1.67 $ 1.31
Diluted earnings (loss) per share attributable to U.S. Cellular
shareholders ......................................... $ (0.51) $ 1.65 $ 1.30
(1) There were no effects of dilutive securities for the year ended December 31, 2014 due to the net
loss for the year.
Certain Common Shares issuable upon the exercise of stock options or vesting of restricted stock units
were not included in average diluted shares outstanding for the calculation of Diluted earnings (loss) per
share attributable to U.S. Cellular shareholders because their effects were antidilutive. The number of
such Common Shares excluded, if any, is shown in the table below.
Year Ended December 31, 2014 2013 2012
(Shares in thousands)
Stock options .................................... 3,279 2,010 2,123
Restricted stock units ............................... 1,186 190 369
On June 25, 2013, U.S. Cellular paid a special cash dividend of $5.75 per share, for an aggregate
amount of $482.3 million, to all holders of U.S. Cellular Common Shares and Series A Common Shares
as of June 11, 2013. Outstanding U.S. Cellular stock options and restricted stock unit awards were
equitably adjusted for the special cash dividend. The impact of such adjustments on the earnings (loss)
per share calculation was fully reflected for all years presented.
NOTE 6 ACQUISITIONS, DIVESTITURES AND EXCHANGES
Divestiture Transaction
On November 6, 2012, U.S. Cellular entered into a Purchase and Sale Agreement with subsidiaries of
Sprint Corp., fka Sprint Nextel Corporation (‘‘Sprint’’). Pursuant to the Purchase and Sale Agreement, on
May 16, 2013, U.S. Cellular transferred customers and certain PCS license spectrum to Sprint in U.S.
Cellular’s Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (‘‘Divestiture
Markets’’) in consideration for $480 million in cash. The Purchase and Sale Agreement also
contemplated certain other agreements, together with the Purchase and Sale Agreement collectively
referred to as the ‘‘Divestiture Transaction.’’
These other agreements included customer and network transition services agreements, which required
U.S. Cellular to provide customer, billing and network services to Sprint for a period of up to 24 months
52