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					Nine Months Ended
				September 30,					September 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			$	51,071	$	(116,042)	$		219,832	$	(119,851)
Adjustments to compute diluted earnings (loss):
	Noncontrolling interest adjustment				(384)		–			(1,540)		–
	Preferred dividend adjustment				12		–			37		–
	Net income (loss) attributable to common shareholders of
		TDS used in diluted earnings (loss) per share		$	50,699	$	(116,042)	$		218,329	$	(119,851)

Weighted average number of shares used in basic
	earnings (loss) per share:
		Common Shares			101,652		101,067			101,315		101,474
		Series A Common Shares			7,196		7,185			7,188		7,176
			Total		108,848		108,252			108,503		108,650

Effects of dilutive securities:
	Stock options				818		–			778		–
	Restricted stock units				498		–			406		–
	Preferred shares				50		–			50		–
Weighted average number of shares used in diluted
	earnings (loss) per share				110,214		108,252			109,737		108,650

Basic earnings (loss) per share attributable to TDS
	shareholders			$	0.47	$	(1.07)	$		2.03	$	(1.10)

Diluted earnings (loss) per share attributable to TDS
	shareholders			$	0.46	$	(1.07)	$		1.99	$	(1.10)

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				Nine Months Ended
		September 30,				September 30,
		2015		2014		2015		2014
(Shares in thousands)
Stock options	4,687		9,207		4,438		8,922
Restricted stock units	–		992		191		823
Preferred shares	–		52		–		52