Earnings Per Share

9 Months Ended

Sep. 30, 2022

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per share for the three months and nine months ended September 30, 2022 and 2021, is shown in the table below:


	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Numerators
Numerator for basic earnings per share:
Income from continuing operations, net of tax	$	6,346	$	5,019	$	16,246	$	18,574
Net income from continuing operations attributable to noncontrolling interests	(373)		(356)		(1,107)		(1,137)
Preferred Stock Dividends	(49)		(50)		(149)		(156)
Income from continuing operations attributable to common stock	5,924		4,613		14,990		17,281
Income (loss) from discontinued operations, net of tax	53		1,254		(146)		(2,485)
Net (income) loss from discontinued operations attributable to noncontrolling interests	—		1		—		86
Income (loss) from discontinued operations attributable to common stock	53		1,255		(146)		(2,399)
Net Income Attributable to Common Stock	$	5,977	$	5,868	$	14,844	$	14,882
Dilutive potential common shares:
Mobility II preferred interests	139		140		419		420
Share-based payment	4		6		13		17
Numerator for diluted earnings per share	$	6,120	$	6,014	$	15,276	$	15,319
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding	7,153		7,171		7,169		7,167
Dilutive potential common shares:
Mobility II preferred interests (in shares)	446		304		394		294
Share-based payment (in shares)	48		31		42		30
Denominator for diluted earnings per share	7,647		7,506		7,605		7,491

Upon the adoption of ASU 2020-06 in the first quarter of 2022, the ability to settle our Mobility II preferred interests in stock is reflected in our diluted earnings per share calculation. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. The numerator includes an adjustment to add back to income the earned distributions on the Mobility II preferred interests, included in net income attributable to noncontrolling interest, and the denominator includes the potential issuance of AT&T common stock to settle the Mobility II preferred interests outstanding. (See Note 1)