Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

Earnings Per Share

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic earnings per share and diluted earnings per share for the three months ended March 31, 2014 and 2013, is shown in the table below:

	Three months ended
	March 31,
	2014		2013
Numerators
Numerator for basic earnings per share:
Net income	$	3,734	$	3,773
Less: Net income attributable to noncontrolling interest		(82)		(73)
Net income attributable to AT&T		3,652		3,700
Dilutive potential common shares:
Share-based payment		4		4
Numerator for diluted earnings per share	$	3,656	$	3,704
Denominators (000,000)
Denominator for basic earnings per share:
Weighted-average number of common shares outstanding		5,222		5,513
Dilutive potential common shares:
Share-based payment (in shares)		16		17
Denominator for diluted earnings per share		5,238		5,530
Basic earnings per share attributable to AT&T	$	0.70	$	0.67
Diluted earnings per share attributable to AT&T	$	0.70	$	0.67

At March 31, 2014 and 2013, we had issued and outstanding options to purchase approximately 12 million and 15million shares of AT&T common stock. For the quarter ended March 31, 2014 and 2013, the exercise prices of 3 million and 4 million shares were above the market price of AT&T stock for the respective periods. Accordingly, we did not include these amounts in determining the dilutive potential common shares.