Earnings Per Share

3 Months Ended

Mar. 31, 2023

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022, is shown in the table below:


	Three months ended
	March 31,
		2023		2022
Numerators
Numerator for basic earnings per share:
Income from continuing operations, net of tax		$	4,453	$	5,149
Net income from continuing operations attributable to noncontrolling interests		(225)		(354)
Preferred Stock Dividends		(52)		(48)
Income from continuing operations attributable to common stock		4,176		4,747


Income from discontinued operations attributable to common stock		—		15
Net Income Attributable to Common Stock		$	4,176	$	4,762
Dilutive potential common shares:
Mobility preferred interests		72		140
Share-based payment		4		6
Numerator for diluted earnings per share		$	4,252	$	4,908
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding		7,168		7,184
Dilutive potential common shares:
Mobility preferred interests (in shares)		284		337
Share-based payment (in shares)		22		35
Denominator for diluted earnings per share		7,474		7,556

Under ASU No. 2020-06, “Debt—Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (ASU 2020-06), the ability to settle our Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility II LLC (Mobility preferred interests) in stock is reflected in our diluted earnings per share calculation. 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. On April 5, 2023, we repurchased the remaining Mobility preferred interests and our calculation of diluted earnings per share will not reflect the dilutive potential of these instruments for the quarterly periods after the repurchase.