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Earnings Per Share
 6 Months Ended
Jun. 30, 2013
Disclosure Text Block  
Earnings per Share

4. Earnings Per Share

 

Basic earnings per share attributable to U.S. Cellular shareholders is computed by dividing Net income attributable to U.S. Cellular shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to U.S. Cellular shareholders is computed by dividing Net income attributable to U.S. Cellular shareholders 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 per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows:

             
             
  Three Months Ended June 30, Six Months Ended June 30,
  2013 2012 2013 2012
(Dollars and shares in thousands, except per share amounts)           
Net income attributable to U.S. Cellular shareholders$ 143,391 $ 52,685 $ 148,305 $ 115,177
             
Weighted average number of shares used in basic earnings per share  83,845   84,707   83,842   84,638
Effects of dilutive securities:           
 Stock options  226   163   201   202
 Restricted stock units  590   366   612   408
Weighted average number of shares used in diluted earnings per share  84,661   85,236   84,655   85,248
             
Basic earnings per share attributable to U.S. Cellular shareholders$ 1.71 $ 0.62 $ 1.77 $ 1.36
             
Diluted earnings per share attributable to U.S. Cellular shareholders$ 1.69 $ 0.62 $ 1.75 $ 1.35

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 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.

     
  Three Months Ended June 30, Six Months Ended June 30,
  2013 2012 2013 2012
(Shares in thousands)       
Stock options 2,437  2,498  2,041  2,005
         
Restricted stock units 208  223  221  242

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. 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 per share calculation was reflected in the three and six months ended June 30, 2012.