5. Earnings Per Share

Basic earnings (loss) per share attributable to TDS shareholders is computed by dividing Net income (loss) available to common shareholders of TDS by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share attributable to TDS shareholders is computed by dividing Net income (loss) available to common shareholders of TDS 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 exercise of outstanding stock options and the vesting of 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							Six Months Ended
					June 30,							June 30,
					2015				2014				2015				2014
(Dollars and shares in thousands, except per share amounts)
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			$		23,034		$		(22,050)		$		168,761		$		(3,809)
Adjustments to compute diluted earnings (loss):
	Noncontrolling interest adjustment					(116)				–				(1,214)				(5)
	Preferred dividend adjustment					–				–				25				–
	Net income (loss) attributable to common shareholders of
		TDS used in diluted earnings (loss) per share			$		22,918		$		(22,050)		$		167,572		$		(3,814)

Weighted average number of shares used in basic
	earnings (loss) per share:
		Common Shares					101,296				101,543				101,144				101,682
		Series A Common Shares					7,188				7,176				7,183				7,171
			Total				108,484				108,719				108,327				108,853

Effects of dilutive securities:
	Stock options					896				–				623				–
	Restricted stock units					405				–				384				–
	Preferred shares					–				–				46				–
Weighted average number of shares used in diluted
	earnings (loss) per share					109,785				108,719				109,380				108,853

Basic earnings (loss) per share attributable to TDS
	shareholders			$		0.21		$		(0.20)		$		1.56		$		(0.04)

Diluted earnings (loss) per share attributable to TDS
	shareholders			$		0.21		$		(0.20)		$		1.53		$		(0.04)

Certain Common Shares issuable upon the exercise of stock options, vesting of 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 attributable to TDS shareholders because their effects were antidilutive. The number of such Common Shares excluded, if any, is shown in the table below.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014
(Shares in thousands)
Stock options	4,523	8,883	5,304	8,777
Restricted stock units	204	824	104	737
Preferred shares	46	56	–	56