Note 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
		March 31,
		2016		2015
(Dollars and shares in millions, except per share amounts)
Net income attributable to U.S. Cellular shareholders		$	9	$	160

Weighted average number of shares used in basic earnings per share			84		84
Effects of dilutive securities1			1		1
Weighted average number of shares used in diluted earnings per share			85		85

Basic earnings per share attributable to U.S. Cellular shareholders		$	0.10	$	1.90

Diluted earnings per share attributable to U.S. Cellular shareholders		$	0.10	$	1.89

1	Includes effects of stock options and restricted stock units.

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 was approximately 2 million shares for both the three months ended March 31, 2016 and 2015.