US Cellular 2015 Annual Report Download - page 86

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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, 2015 2014 2013
(Dollars and shares in thousands, except earnings per share)
Basic earnings (loss) per share attributable to TDS shareholders:
Net income (loss) available to common shareholders of TDS used in basic earnings
(loss) per share ............................................. $ 218,988 $ (136,404) $ 141,878
Adjustments to compute diluted earnings:
Noncontrolling interest adjustment ................................. (1,525) – (1,058)
Preferred dividend adjustment .................................... 49 –49
Net income (loss) available to common shareholders of TDS used in diluted earnings
(loss) per share ............................................. $ 217,512 $ (136,404) $ 140,869
Weighted average number of shares used in basic earnings (loss) per share
Common Shares ........................................... 101,453 101,304 101,339
Series A Common Shares ..................................... 7,192 7,181 7,151
Total ................................................. 108,645 108,485 108,490
Effects of dilutive securities:
Stock options1.............................................. 773 – 209
Restricted stock units1......................................... 436 – 375
Preferred shares1............................................ 56 –58
Weighted average number of shares used in diluted earnings (loss) per share ........ 109,910 108,485 109,132
Basic earnings (loss) per share attributable to TDS shareholders ................ $ 2.02 $ (1.26) $ 1.31
Diluted earnings (loss) per share attributable to TDS shareholders ............... $ 1.98 $ (1.26) $ 1.29
1There were no effects of dilutive securities in 2014 due to the net loss for the year.
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.
Certain Common Shares issuable upon the exercise of stock options, vesting of restricted stock units or conversion of
convertible preferred shares were not included in average diluted shares outstanding for the calculation of Diluted
earnings (loss) per share attributable to TDS shareholders because their effects were antidilutive. The number of such
Common Shares excluded is shown in the table below.
Year Ended December 31, 2015 2014 2013
(Shares in thousands)
Stock options ............................................................ 4,499 8,984 7,120
Restricted stock units ....................................................... 190 839 171
Preferred shares .......................................................... –56 –
NOTE 6 ACQUISITIONS, DIVESTITURES AND EXCHANGES
Divestiture Transaction
On May 16, 2013, pursuant to a Purchase and Sale Agreement, U.S. Cellular sold customers and certain PCS spectrum
licenses to subsidiaries of Sprint Corp. fka Sprint Nextel Corporation (‘‘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.’’
78
TELEPHONE AND DATA SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS