Earnings Per Share

12 Months Ended

Dec. 31, 2022

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below:


Year Ended December 31,	2022		2021		2020
Numerators
Numerator for basic earnings per share:
Income (loss) from continuing operations, net of tax	$	(6,874)	$	23,776	$	(1,522)
Net income from continuing operations attributable to noncontrolling interests	(1,469)		(1,485)		(1,470)
Preferred Stock Dividends	(203)		(207)		(193)
Income (loss) from continuing operations attributable to common stock	(8,546)		22,084		(3,185)
Adjustment to carrying value of noncontrolling interest	663		—		—
Numerator for basic earnings per share from continuing operations1	(7,883)		22,084		(3,185)
Loss from discontinued operations, net of tax	(181)		(2,297)		(2,299)
Loss from discontinued operations attributable to noncontrolling interests	—		87		115
Loss from discontinued operations attributable to common stock	(181)		(2,210)		(2,184)
Numerator for basic earnings per share1	$	(8,064)	$	19,874	$	(5,369)
Dilutive potential common shares:
Mobility preferred interests2	526		560		560
Share-based payment2	17		22		23
Numerator for diluted earnings per share	$	(7,521)	$	20,456	$	(4,786)
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding	7,166		7,168		7,157
Dilutive potential common shares:
Mobility preferred interests (in shares)	378		304		283
Share-based payment (in shares)	43		31		26
Denominator for diluted earnings per share2	7,587		7,503		7,466
1For 2022, in the calculation of basic earnings per share, income (loss) attributable to common stock for continuing operations and total company has been increased by $663 from adjustment to carrying value of noncontrolling interest. (See Note 16)
2For 2022 and 2020, dilutive potential common shares are not included in the computation of diluted earnings per share because their effect is antidilutive as a result of the net loss.

Upon the adoption of ASU 2020-06 in the first quarter of 2022, the ability to settle our Mobility preferred interests in stock is reflected in our diluted earnings per share calculation, unless the effect is antidilutive. While our intent is to settle the Mobility 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 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 from continuing operations the earned distributions on the Mobility 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 preferred interests outstanding. (See Notes 1 and 16)