Earnings Per Share

9 Months Ended

Sep. 30, 2023

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, 2023 and 2022, is shown in the table below:


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Numerators
Numerator for basic earnings per share:
Income from continuing operations, net of tax	$	3,826	$	6,346	$	13,041	$	16,246
Net income from continuing operations attributable to noncontrolling interests	(331)		(373)		(829)		(1,107)
Preferred Stock Dividends	(51)		(49)		(155)		(149)
Income from continuing operations attributable to common stock	3,444		5,924		12,057		14,990


Income (loss) from discontinued operations attributable to common stock	—		53		—		(146)
Net Income Attributable to Common Stock	$	3,444	$	5,977	$	12,057	$	14,844
Dilutive potential common shares:
Mobility preferred interests	—		139		72		419
Share-based payment	—		4		10		13
Numerator for diluted earnings per share	$	3,444	$	6,120	$	12,139	$	15,276
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding	7,185		7,153		7,178		7,169
Dilutive potential common shares:
Mobility preferred interests (in shares)	—		446		95		394
Share-based payment (in shares)	—		48		7		42
Denominator for diluted earnings per share	7,185		7,647		7,280		7,605

On April 5, 2023, we repurchased all our Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility II LLC (Mobility preferred interests) (see Note 12). For periods prior to repurchase, 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 the Mobility preferred interests in stock was reflected in our diluted earnings per share calculation.